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WATCH LIST - SEPTEMBER 9-01-06

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SEPTEMBER

OPTION WRITER

As of 9-01-06

STOCK

WATCH LIST IF PRICE

WATCH LIST

ISSUE

PRICE

DROPS h

PRICE

IDCC

33.23

BELOW

27.00

KKD

8.25

BELOW

8.00

THRX

26.54

BELOW

23.00

IIG

12.91

BELOW

13.50

GM

29.18

BELOW

29.00

CRME

13.96

BELOW

11.50

WATCH LIST COMMENTARY:

IIG drops another $0.19 to $12.91 and will still remain the only issue on our WATCH LIST with close below $13.50.

CURRENT ISSUES ON THE WATCH LIST - 9-01-06

IIG

Explanation of the Watch List:

The "WATCH LIST" is nothing more than a quick way

to see where the current stock price is in relationship to the short side of our trade.

It simply works like this:

If the strike is more than two strikes away from our SHORT side

We code it in GREEN

>

If the stock remains in the normal trading range.

We do not code it it remains WHITE

>

If the stock goes below the predetermined WATCH LIST Target ( if put spread ) or above ( if call spread).

We code it in YELLOW. ( The yellow just means we should be watching the issue.

If the issue goes into the MONEY against our "Short" position

We code it RED and will act on the position by closing out the position or by "rolling" the position up or down

The WATCH LIST is nothing more than a gauge to measure, quickly where we are and which position we might have to WATCH and maybe even potentially acted upon.

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