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NEW PLAYS for AUGUST OPTION WRITER

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We are adding the following two (2) put writes to our AUGUST RECOMMENDED LIST

We are recommending put writes on the following issues:

AMAG - Advanced Magnetics, Inc. engages in the development and commercialization of superparamagnetic iron oxide nanoparticles used in pharmaceutical products. The company's products include Combidex, Ferumoxytol, Feridex I.V., and GastroMARK. The Combidex, which is under phase III development is an investigational functional molecular imaging agent used in conjunction with magnetic resonance imaging (MRI) to aid in the differentiation of cancerous from noncancerous lymph nodes; Ferumoxytol, which is under phase III multicenter clinical trials is used as an iron replacement therapeutic in anemic kidney disease patients, as well as under phase II clinical trials for use as a contrast agent in magnetic resonance angiography.

KKD - Krispy Kreme doughnut company with franchisee agreements with companies in the Middle East, Hong Kong and Macau, Tokyo, and now the Philippines. In all, the agreements could add as many as 190 new Krispy Kreme locations in the next five years.

We are recommending the following specific put writes:

AMAG 33.2
SELL AMAG AUG SYM: AVM-TF
Target Price $70.00 30 Put
Potential Profit(10 x = $700.00

Initial Margin $7,340 10 (contracts)
Return on Investment 9.54%
Cost Basis in Stock = $29.30
Days to Expiration = 25
Stock goes on Watch List Price at: $31.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00


KKD $8.36
SELL KKD AUG SYM: KKD-TU
Target Price $40.00 7.5 Put
Potential Profit(10 x = $300.00
Initial Margin $2,072 10 (contracts)
Return on Investment 19.31%
Cost Basis in Stock = $7.10
Days to Expiration = 25
Stock goes on Watch List Price at: $8.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $7.50


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