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NOVEMBER INITIAL RECOMMENDATIONS 10-14-06

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We are recommending the following put writes to start out our NOVEMBER cycle.

We are recommending put writes in the following issues:

PALM - Palm, Inc., a leader in mobile computing, strives to put the power of computing in people's hands so they can access and share their most important information. The company's products include smartphones, under the Treo brand; mobile managers, and under the LifeDrive brands.

GLBC - Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network.

KKD - Krispy Kreme Doughnuts Inc. is a leading branded specialty retailer of premium quality doughnuts which are made throughout the day in our stores. The principal business is the high volume production and sale of varieties of premium quality doughnuts,

FLOW - Flow International Corporation is the world's leading developer and manufacturer of ultrahigh-pressure waterjet technology for cutting, cleaning and food safety applications. FLOW provides total system solutions for industries including automotive, aerospace, paper, surface preparation and food production.

We are recommending the following specific put writes.

PALM 16.26
SELL OPEN NOV 15 PUT = UPY-WC
Target Price $30.00
Potential Profit(10 x = $300.00

Initial Margin $3,552 10 (contracts)
Return on Investment 8.45%
Cost Basis in Stock = $14.70
Days to Expiration = 36
Stock goes on Watch List Price at: $15.75
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $15.00

GLBC $22.36
SELL OPEN NOV 20.00 PUT = GQC-WD
Target Price $45.00
Potential Profit(10 x = $450.00
Initial Margin $4,922 10 (contracts)
Return on Investment 9.14%
Cost Basis in Stock = $19.55
Days to Expiration = 36
Stock goes on Watch List Price at: $21.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00


KKD $8.80
SELL OPEN NOV 7.50 PUT = KKD-WU
Target Price $20.00
Potential Profit(10 x = $200.00
Initial Margin $1,960 10 (contracts)
Return on Investment 10.20%
Cost Basis in Stock = $7.30
Days to Expiration = 36
Stock goes on Watch List Price at: $8.25
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $7.50


FLOW $14.25
SELL OPEN NOV 12.5 PUT = FQW-WV
Target Price $25.00
Potential Profit(10 x = $250.00

Initial Margin $3,100 10 (contracts)
Return on Investment 8.06%
Cost Basis in Stock = $12.25
Days to Expiration = 36
Stock goes on Watch List Price at: $13.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $12.50


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