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additional Option Writer August 2007 recommendations 7-24-07

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We are adding the following two put writes to our AUGUST recommended list

We are recommending put writes in the following issues:

XRTA - Xyratex Limited is a leading provider of enterprise data storage subsystems and network technology. They design and manufacture enabling technology that provides their OEM and disk drive manufacturer customers with data storage products to support high-performance storage and data communication networks.

SWHC - Smith & Wesson Holding Corporation is one of the world's leading producers of quality handguns, law enforcement products and firearm safety and security products. Law enforcement personnel, military personnel, target shooters, hunters, collectors and firearms enthusiasts throughout the world have used the company's products with confidence for 150 years. Smith & Wesson Corp.

We are recommending the following specific put writes

XRTX 23.74
SELL AUG 22.5 PUT = TQR-TX
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $4,948 10 (contracts)
Return on Investment 4.04%
Cost Basis in Stock = $22.30
Days to Expiration = 24
Stock goes on Watch List Price at: $23.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50


SWHC $18.12
SELL AUG 17.50 PUT = UWJ-TW
Target Price $45.00
Potential Profit(10 x = $450.00

Initial Margin $4,074 10 (contracts)
Return on Investment 11.05%
Cost Basis in Stock = $17.05
Days to Expiration = 24
Stock goes on Watch List Price at: $17.90
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $17.50

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