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Additional Plays for SEPTEMBER RECOMMENDED LIST 9-5-06

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

We are recommending put writes in the following issues:

BMHC - Building Materials Holding Corporation provides construction services and building products to professional homebuilders and contractors throughout the United States. It operates through two segments, BMC Construction and BMC West. The BMC Construction segment provides framing, concrete, plumbing, other construction trades, managing labor, and construction schedules, as well as sourcing materials to production homebuilders.

OSTK - Overstock.com, Inc. operates as an online retailer primarily in the United States. It offers bed-and-bath goods, furniture, kitchenware, watches, jewelry, computers and electronics, sporting goods, apparel, and designer accessories. The Company also sells books, magazines, CDs, DVDs, videocassettes, and video games. In addition, it provides air, hotel, and car reservation services, as well as cruise and vacation packages.

We are recommending the following specific put writes:


BMHC 25.75
SELL SEP 22.5 PUT = BGU-UX
Target Price $25.00
Potential Profit(10 x = $250.00
Initial Margin $5,400 10 (contracts)
Return on Investment 4.63%
Cost Basis in Stock = $22.25
Days to Expiration = 9
Stock goes on Watch List Price at: $24.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50


OSTK $18.47
SELL SEP 17.50 PUT = QKT-UW
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $3,894 10 (contracts)
Return on Investment 5.14%
Cost Basis in Stock = $17.30
Days to Expiration = 9
Stock goes on Watch List Price at: $18.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $17.50

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