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MCM October 2007 recommendations 09-16-07

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We are starting OCTOBER with following put writes

We are recommending put writes in the following issues

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.

SNDA - Shanda Interactive Entertainment Limited, through its subsidiaries, engages in the development and operation of online games in China. It offers a portfolio of online games, which users play over the Internet. The company's content offerings primarily comprise online games, including massively multiplayer online role playing games (MMORPGs) and casual games, as well as online chess and board games, a network PC game platform, and wireless games.

XMSR - XM Satellite Radio Holdings Inc. is developing a new band of radio. The system will use direct satellite-to-receiver broadcasting technology to provide listeners with crystal-clear sound seamlessly from coast to coast. XM will offer a broad selection of listening choices created by its XM Originals programming unit and by premier content providers, including USA TODAY, BBC World Service, Black Entertainment Television, Bloomberg Radio, C-SPAN Radio, CNN/Financial Network, CNN/Sports Illustrated, The Weather Channel, One-On-One Sports and many others.

CYPB - Cypress Bioscience, Inc. is committed to be the innovator and leader in providing products that improve the treatment of Functional Somatic Syndromes and other central nervous system conditions.


We are recommending the following specific put writes

OSTK 24.17
SELL OCT 20 PUT = QKT-VD
Target Price $35.00
Potential Profit(10 x = $350.00

Initial Margin $5,184 10 (contracts)
Return on Investment 6.75%
Cost Basis in Stock = $19.65
Days to Expiration = 34
Stock goes on Watch List Price at: $22.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00

SNDA $33.09
SELL OCT 30.00 PUT = QKU-VF
Target Price $70.00
Potential Profit(10 x = $700.00
Initial Margin $7,318 10 (contracts)
Return on Investment 9.57%
Cost Basis in Stock = $29.30
Days to Expiration = 34
Stock goes on Watch List Price at: $32.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $30.00


XMSR $14.84
SELL OCT 12.50 PUT = QSY-VV
Target Price $35.00
Potential Profit(10 x = $350.00
Initial Margin $3,318 10 (contracts)
Return on Investment 10.55%
Cost Basis in Stock = $12.15
Days to Expiration = 34
Stock goes on Watch List Price at: $13.75
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $12.50

CYPB $14.48
SELL OCT 12.5 PUT =
QGY-VV
Target Price $45.00
Potential Profit(10 x = $450.00
Initial Margin $3,346 10 (contracts)
Return on Investment 13.45%
Cost Basis in Stock = $12.05
Days to Expiration = 34
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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