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Additional OW OCTOBER 2007 recommendations 9-23-07

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We are adding the following put writes to our OCTOBER 2007 recommended list

We are recommending put writes in the following issues:


GRA - W. R. Grace & Co. produces specialty chemicals. They primarily operate through the following two business segments: Davison Chemicals and Performance Chemicals. Davison Chemicals manufactures catalysts (fluid cracking, hydroprocessing and polyolein) and silica and zeolite absorbents

ELON - Echelon Corporation develops, markets and supports products and services that allow everyday devices, such as light switches, washing machines, assembly line robots, thermostats, gas pumps, motion sensors, air conditioners, pumps, and valves, to be made smart and to communicate with one another and across the Internet.

ELN - Elan Corporation, plc is a leading worldwide specialty pharmaceutical company focused on the discovery, development and marketing of therapeutic products and services in neurology, acute care and pain management and on the development and commercialization of products using its extensive range of proprietary drug delivery technologies

ACAD - Acadia Pharmaceuticals is a biopharmaceutical company focused on the discovery, development and commercialization of small molecule drugs for the treatment of central nervous system disorders. Their three clinical programs are ACP-103 for treatment-induced dysfunction in Parkinson's disease, and ACP-104 and ACP-103, both for the treatment of schizophrenia.

We are recommending the following specific put writes:

GRA 27.08
SELL OCT 22.5 PUT = GRA-VX
Target Price $25.00
Potential Profit(10 x = $250.00

Initial Margin $5,666 10 (contracts)
Return on Investment 4.41%
Cost Basis in Stock = $22.25
Days to Expiration = 25
Stock goes on Watch List Price at: $25.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50

ELON $28.79
SELL OCT 22.50 PUT = EUL-VX
Target Price $25.00
Potential Profit(10 x = $250.00
Initial Margin $6,008 10 (contracts)
Return on Investment 4.16%
Cost Basis in Stock = $22.25
Days to Expiration = 25
Stock goes on Watch List Price at: $26.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $22.50

ELN $20.00
SELL OCT 16.00 PUT = ELN-VQ
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $4,200 10 (contracts)
Return on Investment 4.76%
Cost Basis in Stock = $15.80
Days to Expiration = 25
Stock goes on Watch List Price at: $18.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $16.00


ACAD $15.73
SELL OCT 12.5 PUT =
AQY-VV
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $3,346 10 (contracts)
Return on Investment 5.98%
Cost Basis in Stock = $12.30
Days to Expiration = 25
Stock goes on Watch List Price at: $14.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $12.50


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