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NEW AUGUST recommendations for Option Writer 8-6-06

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We are recommending the following two (2) puts for the AUGUST expiration

We are recommending puts in the following issues:

TEN - Tenneco Automotive is one of the world's largest producers and marketers of ride control and exhaust systems and products, which are sold under the Monroe and Walker global brand names. Among its products are Sensa-Trac and Reflex shocks and struts, Rancho shock absorbers, Walker Quiet-Flow mufflers and DynoMax performance exhaust products, and Monroe Clevite vibration control components.

BOOM - DYNAMIC MATERIALS CORP. is engaged in explosion metal working. Forms of explosion metal working include: cladding, where two or more metals are explosively joined to each other; and forming of metals in which metals are shaped, shock hardened, or altered using explosives as an energy source. It distributes its products in North America primarily through its internal sales organization

We are recommending the following specific put writes (sells):


BOOM 32.91
SELL BOOM AUG SYM: QCB-TF
Target Price $30.00 30 Put
Potential Profit(10 x = $300.00
Initial Margin $6,882 10 (contracts)
Return on Investment 4.36%
Cost Basis in Stock = $29.70
Days to Expiration = 11
Stock goes on Watch List Price at: $31.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00


TEN $23.59
SELL TEN AUG SYM: TEN-TX
Target Price $25.00 22.5 Put
Potential Profit(10 x = $250.00

Initial Margin $4,968 10 (contracts)
Return on Investment 5.03%
Cost Basis in Stock = $22.25
Days to Expiration = 11
Stock goes on Watch List Price at: $23.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50


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