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Additional Option Writer November Positions 10-22-06

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We are recommending the following three (3) put writes to our NOVEMBER RECOMMENDED LIST.

We are recommending put writes in the following issues:

MOGN - MGI Pharma Inc is an oncology-focused pharmaceutical company that acquires, develops and commercializes proprietary pharmaceutical products that meet patient needs. They currently market four cancer-related products in the United States using their 50-person specialty sales organization

AMR - AMR Corporation operations fall almost entirely in the airline industry. AMR's principal subsidiary is American Airlines, Inc. American is one of the largest scheduled passenger airlines in the world and provides scheduled jet service to more than 169 destinations throughout North America, the Caribbean, Latin America, Europe and the Pacific.

LGND - Ligand Pharmaceuticals Incorporated discovers, develops and markets new drugs that address critical unmet medical needs of patients in the areas of cancer, skin diseases, and men's and women's hormone-related diseases, as well as osteoporosis, metabolic disorders and cardiovascular and inflammatory diseases.


We are recommending the following specific put writes:


MOGN 19.44
SELL OPEN NOV 17.5 PUT =
QOG-WT
Target Price $20.00
Potential Profit(10 x = $200.00
Initial Margin $4,088 10 (contracts)
Return on Investment 4.89%
Cost Basis in Stock = $17.30
Days to Expiration = 28
Stock goes on Watch List Price at: $18.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $17.50


AMR $27.70
SELL OPEN NOV 25.00 PUT = AMR-WE
Target Price $50.00
Potential Profit(10 x = $500.00

Initial Margin $6,040 10 (contracts)
Return on Investment 8.28%
Cost Basis in Stock = $24.50
Days to Expiration = 28
Stock goes on Watch List Price at: $26.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $25.00


LGND $11.52
SELL OPEN NOV 10.00 PUT = LQP-WB

Target Price $30.00
Potential Profit(10 x = $300.00

Initial Margin $2,604 10 (contracts)
Return on Investment 11.52%
Cost Basis in Stock = $9.70
Days to Expiration = 28
Stock goes on Watch List Price at: $11.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $10.00

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