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New Option Writer September Recommendations 9-3-07

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We are adding the following positions to our SEPTEMBER recommended list

We are recommending the put writes in the following issues:

CREE - Cree, Inc. is a market-leading innovator and manufacturer of semiconductors that enhance the value of solid-state lighting, power and communications products by significantly increasing their energy performance and efficiency. Key to Cree's market advantage is its world-class materials expertise in silicon carbide and gallium nitride for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products.

OSTK - Overstock.com, Inc. is an online closeout retailer offering discount, brand-name merchandise for sale over the Internet. Their merchandise offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.

We are recommending the following specific put writes:

CREE 26.6
SELL SEP 22.5 PUT =
CQR-UX
Target Price $25.00
Potential Profit(10 x = $250.00
Initial Margin $5,570 10 (contracts)

Return on Investment 4.49%
Cost Basis in Stock = $22.25
Days to Expiration = 22
Stock goes on Watch List Price at: $25.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50


OSTK $22.21
SELL SEP 20.00 PUT =
QKT-UD
Target Price $30.00
Potential Profit(10 x = $300.00
Initial Margin $4,742 10 (contracts)
Return on Investment 6.33%
Cost Basis in Stock = $19.70
Days to Expiration = 22
Stock goes on Watch List Price at: $21.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00

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