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SEPTEMBER WATCH LIST UPDATE 9-5-06

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SEPTEMBER

OPTION WRITER

As of 9-05-06

STOCK

WATCH LIST IF PRICE

WATCH LIST

ISSUE

PRICE

DROPS h

PRICE

IDCC

34.25

BELOW

27.00

KKD

8.31

BELOW

8.00

THRX

27.85

BELOW

23.00

IIG

14.20

BELOW

13.50

GM

30.44

BELOW

29.00

CRME

14.02

BELOW

11.50

WATCH LIST COMMENTARY:

IIG comes off the WATCH LIST with big move to close at $14.20 and drops off our WATCH LIST with its close above $13.50.

CURRENT ISSUES ON THE WATCH LIST - 9-05-06

NONE

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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