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Additional Option Writer Plays MAY 2007 4-29-07

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We are recommending the following put writes for our MAY recommended list

We are recommending put writes in the following issues:


LIFC - LifeCell Corporation develops and markets biologic products for the repair or replacement of damaged or inadequate tissues. The company's core preservation technology produces an acellular tissue matrix, which retains the essential biochemical and structural components necessary for normal tissue regeneration. The company's product development programs include a small diameter vascular graft as an alternative to autografted blood vessels, orthopedic applications of its acellular dermal matrix and Thrombosol, a formulation for storage of platelets

VRGY - Verigy, Ltd., together with its subsidiaries, designs, develops, manufactures, and sells test systems and solutions for the semiconductor industry in North America, Europe, and the Asia-Pacific. The company offers a 93000 Series platform to test system-on-a-chip (SOC), system-in-a-package (SIP), and memory devices; and Versatest V5000 Series platform to test memory devices, including flash memory and multi chip packages. SOCs and SIPs are semiconductors that integrate the functionality of multiple individual integrated circuits (IC) onto a single IC or package of ICs and contain both digital and analog functionalities, including radio frequency capabilities, communication interfaces, and embedded memory

DRYS - DryShips, Inc. engages in the ownership and operation of drybulk carriers worldwide. Its fleet carries various dry bulk commodities, including coal, iron ore, grains, bauxite, phosphate, fertilizers, and steel products. As of March 21, 2007, the company owned a fleet of 34 drybulk carriers consisting 5 Capesize, 24 Panamax, 3 Handymax, and 2 newbuilding Panamax vessels with a combined deadweight tonnage of approximately 2.9 million. DryShips, Inc. was founded in 2004 and is based in Athens, Greece

We are recommending the following specific put writes:

LIFC 29.32
SELL MAY 27.50 PUT = QKL-QY
Target Price $25.00
Potential Profit(10 x = $250.00

Initial Margin $6,114 10 (contracts)
Return on Investment 4.09%
Cost Basis in Stock = $27.25
Days to Expiration = 22
Stock goes on Watch List Price at: $28.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $27.50

VRGY $25.04
SELL MAY 22.50 PUT = UHG-QX
Target Price $25.00
Potential Profit(10 x = $250.00

Initial Margin $5,258 10 (contracts)
Return on Investment 4.75%
Cost Basis in Stock = $22.28
Days to Expiration = 22
Stock goes on Watch List Price at: $23.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.53

DRYS $33.69
SELL MAY 30.00 PUT = DQR-QF
Target Price $35.00
Potential Profit(10 x = $350.00

Initial Margin $7,088 10 (contracts)
Return on Investment 4.94%
Cost Basis in Stock = $29.65
Days to Expiration = 22
Stock goes on Watch List Price at: $31.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00



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