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Additrional OW January 2008 recommendations 12-29-07

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We are adding the following issues to our JANUARY recommendation list.

We are recommending put writes in the following issues:

GIGM - GigaMedia Limited, through its subsidiaries, develops and licenses online gaming software, and provides application services, as well as owns and operates an online games portal. It also provides broadband Internet access services. The company, through its subsidiary, Cambridge Entertainment Software Limited, develops and licenses software solutions and application services, including online entertainment and social networking in the Internet-based entertainment markets. It also operates FunTown game portal, an Asian casual game portal that provides online games, including casual games, such as MahJong and varioius card, chess, and table games, as well as provides services, such as game clubs for players, tournaments related to FunTown's online games, and social networking. In addition, GigaMedia provides broadband Internet access services to consumer and corporate customers through various technologies and products, including cable modems, leased-lines, virtual private network, and other value-added services. It operates primarily in Taiwan, Canada, and Hong Kong. The company was founded in 1997 and is headquartered in Taipei, Taiwan.

CREE - Cree, Inc. develops and manufactures semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN), and related compounds. The company produces light emitting diodes (LEDs), SiC and GaN material products, and high-power products using its SiC and GaN materials. Its LED chip products include blue and green devices made from GaN and related materials grown on SiC substrates. These LEDs are electronic components that are used in various applications, including backlighting for mobile products, automotive interior lighting, electronic displays, gaming equipment, consumer products, and other electronic equipment. Cree's high brightness packaged LEDs comprise high brightness LEDs for lighting applications and surface mount devices; and through-hole LEDs for signage, gaming, and other applications.

We are recommending the following specific put writes

GIGM 19.85
SELL JAN 17.5 PUT = GBU-MW
Target Price $20.00
Potential Profit(10 x = $200.00

Initial Margin $4,170 10 (contracts)
Return on Investment 4.80%
Cost Basis in Stock = $17.30
Days to Expiration = 19
Stock goes on Watch List Price at: $18.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less then $17.50

CREE $27.85
SELL JAN 22.50 PUT = CQR-MX
Target Price $30.00
Potential Profit(10 x = $300.00
Initial Margin $5,870 10 (contracts)
Return on Investment 5.11%
Cost Basis in Stock = $22.20
Days to Expiration = 19
Stock goes on Watch List Price at: $25.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less then $22.50

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