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NEW RECOMMENDATIONS for OPTION WRITER 7-30-06

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We are adding the following two (2) put writes to our list of recommendations for AUGUST

W are recommending put writes in the following issues:

CAL - Continental Airlines, Inc. is one of the largest airlines in the U.S., offering departures daily to domestic and international destinations. With hubs in Newark, Houston, Cleveland and Guam, Continental serves numerous international cities, including extensive service throughout the Americas, Europe and Asia.

AMR - AMR Corporation operations fall almost entirely in the airline industry. AMR's principal subsidiary is American Airlines, Inc. American is one of the largest scheduled passenger airlines in the world and provides scheduled jet service to more than 169 destinations throughout North America, the Caribbean, Latin America, Europe and the Pacific. American is also one of the largest scheduled air freight carriers in the world, providing a full range of freight and mail services to shippers throughout its system.


We are recommending the following specific put writes:

CAL 28.46
SELL CAL AUG SYM: CAL-TX
Target Price $20.00 22.5 Put
Potential Profit(10 x = $200.00

Initial Margin $5,892 10 (contracts)
Return on Investment 3.39%
Cost Basis in Stock = $22.30
Days to Expiration = 18
Stock goes on Watch List Price at: $25.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50


AMR $23.25
SELL AMR AUG SYM: AMR-TD
Target Price $25.00 20 Put
Potential Profit(10 x = $250.00
Initial Margin $4,900 10 (contracts)
Return on Investment 5.10%
Cost Basis in Stock = $19.75
Days to Expiration = 18
Stock goes on Watch List Price at: $22.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00


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