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Addition OW January 2008 recommendation 1-07-08

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As we go into the last 2 weeks of this January option cycle, we are recommending the following issue to add to our JANUARY RECOMMENDED LIST.

We are recommending a put write in the following issue:

ELN - Elan Corporation, operates as a neuroscience-based biotechnology company primarily in Ireland and the United States. It operates through two segments, Biopharmaceuticals and Elan Drug Technologies. The Biopharmaceuticals segment engages in the research, development, and commercialization of therapies in the areas of autoimmune diseases and neurodegenerative diseases. It offers Tysabri, an alpha 4 integrin antagonist for the treatment of relapsing forms of multiple sclerosis; Prialt for the management of severe chronic pain in patients for whom intrathecal therapy is warranted; Maxipime, an injectable cephalosporin antibiotic to treat serious and/or life-threatening infections, such as pneumonia, urinary tract infection, and febrile neutropenia; and Azactam, an injectable antibiotic to treat pneumonia, post-surgical infections, and septicemia.

We are recommending the following specific put write:

ELN 23.04
SELL JAN 20 PUT = ELN-MD
Target Price $25.00
Potential Profit(10 x = $250.00

Initial Margin $4,858 10 (contracts)
Return on Investment 5.15%
Cost Basis in Stock = $19.75
Days to Expiration = 14
Stock goes on Watch List Price at: $22.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $20.00

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