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FEBRUARY 2007 OPTION WRITER RECOMMENDATIONS 1-17-07

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We are adding the following three put writes to our FEBRUARY RECOMMENDED LIST


We are recommending put writes on the following issues:

IDCC - INTERDIGITAL COMMUNICATIONS develops and markets advanced digital wireless telecommunications systems using proprietary technologies for voice and data communications and has developed an extensive patent portfolio related to those technologies.

POZN - Pozen Inc. is pharmaceutical development company committed to building a portfolio of products with significant commercial potential in select therapeutic areas. Its initial area of focus is migraine, where the company have built a portfolio of four product candidates through a combination of innovation and in-licensing. Its lead product candidate is MT 100, which the company is developing as an oral first-line therapy for the treatment of migraine.

CVTX - CV Therapeutics is a biopharmaceutical company engaged in the discovery and development of new small molecule drugs to treat cardiovascular disease, the leading cause of death in the United States. The company has several research and preclinical development programs designed to bring additional drug candidates into human clinical testing.

We are recommending the following specific put writes

IDCC 33.70
SELL FEB 30 PUT = DAQ-NF
Target Price $60.00
Potential Profit(10 x = $600.00
Initial Margin $7,340 10 (contracts)
Return on Investment 8.17%
Cost Basis in Stock = $29.40
Days to Expiration = 29
Stock goes on Watch List Price at: $32.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00


POZN $17.26
SELL FEB 15.00 PUT = QKZ-NC
Target Price $40.00
Potential Profit(10 x = $400.00

Initial Margin $3,852 10 (contracts)
Return on Investment 10.38%
Cost Basis in Stock = $14.60
Days to Expiration = 29
Stock goes on Watch List Price at: $16.25
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $15.00


CVTX $14.26
SELL FEB 12.50 PUT = UXC-NS
Target Price $40.00
Potential Profit(10 x = $400.00
Initial Margin $3,252 10 (contracts)
Return on Investment 12.30%
Cost Basis in Stock = $12.10
Days to Expiration = 29
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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