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Additional DECEMBER recommendations 11-28-06

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We are adding the following three (3) put write recommendations to our DECEMBER RECOMMENDED List


We are recommending put writes in the following issues:


VSE - VeraSun Energy Corporation engages in the production and sale of ethanol and its co-products principally in the United States. Ethanol is primarily used as a blend component in the gasoline fuel market. The company also produces and sells ethanol co-products, which include dried distillers grain with solubles, a animal feed sold primarily as an ingredient in beef and dairy cattle rations to agricultural customers; wet distillers grains with solubles, a livestock feed sold as wet feed to agricultural customers; and corn oil

IOC - Interoil Corp is a vertically integrated energy company whose primary focus is Papua New Guinea and the surrounding region. Its assets comprise an oil refinery, upstream petroleum exploration licenses, and retail and commercial distribution assets

RMBS - Rambus, Inc. designs, develops, licenses and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of computers, consumer electronics and other electronic systems.

We are recommending the following specific put writes:

VSE 24.66
SELL DEC 22.5 PUT =
VSE-XX
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $5,132 10 (contracts)
Return on Investment 3.90%
Cost Basis in Stock = $22.30
Days to Expiration = 17
Stock goes on Watch List Price at: $23.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50


IOC $26.29
SELL DEC 22.50 PUT = IOC-XX
Target Price $30.00
Potential Profit(10 x = $300.00
Initial Margin $5,558 10 (contracts)
Return on Investment 5.40%
Cost Basis in Stock = $22.20
Days to Expiration = 17
Stock goes on Watch List Price at: $24.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50

RMBS $22.19
SELL DEC 20.00 PUT
= BNQ-XD
Target Price $40.00
Potential Profit(10 x = $400.00

Initial Margin $4,838 10 (contracts)
Return on Investment 8.27%
Cost Basis in Stock = $19.60
Days to Expiration = 17
Stock goes on Watch List Price at: $21.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00

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