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Option Writer APRIL 2007 recommendations 3-20-07

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We are adding the following three (3) put writes to our recommended list.


We are recommending put writes on the following issues:

KG - King Pharmaceuticals, Inc. is a vertically integrated pharmaceutical company that manufactures, markets and sells primarily branded prescription pharmaceutical products. Through a national sales force they market their branded pharmaceutical products to general/family practitioners, internal medicine physicians, cardiologists, endocrinologists, pediatricians and hospitals across the country.

COGO - Comtech Group is a leading provider of customized module design solutions in China and serves as a gateway to leading electronics manufacturers in China. Comtech Group has historically focused on the mobile handset and telecom equipment end-markets, but has recently expanded its addressable market to include the digital home entertainment products end-markets

AXL - American Axle & Manufacturing Holdings Inc. is a world leader in the design, engineering and manufacture of driveline systems for light trucks and sport utility vehicles. The company's product lines include rear axles, independent front four-wheel drive axles, all-wheel-drive system components, independent rear-drive systems, TracRite differentials, propeller shafts, steering linkages, anti-roll systems, steering & suspension systems, and forged products


We are recommending the following specific put writes


KG 19.12
SELL APRIL 17.5 PUT = KG-PW
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $4,024 10 (contracts)
Return on Investment 4.97%
Cost Basis in Stock = $17.30
Days to Expiration = 31
Stock goes on Watch List Price at: $18.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $17.50


COGO $17.07
SELL APRIL 15.00 PUT = UWK-PC
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $3,614 10 (contracts)
Return on Investment 5.53%
Cost Basis in Stock = $14.80
Days to Expiration = 31
Stock goes on Watch List Price at: $16.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $15.00

AXL $27.03
SELL APRIL 25.00 PUT = AXL-PE
Target Price $45.00
Potential Profit(10 x = $450.00
Initial Margin $5,856 10 (contracts)
Return on Investment 7.68%
Cost Basis in Stock = $24.55
Days to Expiration = 31
Stock goes on Watch List Price at: $26.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $25.00

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