We are going to add two additional plays to the August recommended list.

We are recommending credit spreads in the following issues.

DO - Diamond Offshore Drilling, Inc. operates as an offshore oil and gas drilling contractor worldwide. The company provides offshore drilling services in the deepwater, harsh environment, conventional semisubmersible, and jack-up markets to independent oil and gas companies and government-owned oil companies. As of December 31, 2009, it operated a fleet of 47 offshore rigs consisting of 32 semisubmersibles, 14 jack-ups, and 1 drillship. The company was founded in 1989 and is headquartered in Houston, Texas. Diamond Offshore Drilling, Inc. is a subsidiary of Loews Corporation.

BTU - Peabody Energy Corporation, through its subsidiaries, engages in the exploration, mining, and production of coal worldwide. It owns interests in 28 coal operations located in the United States and Australia, as well as owns joint venture interests in a Venezuelan mine. The company also markets, brokerages, and trades coal. It also develops mine-mouth coal-fueled generating plants; and develops Btu Conversion technologies, which are designed to convert coal to natural gas and transportation fuels. The company sells its thermal coal to electric utilities and metallurgical coal to industrial customers. As of December 31, 2009, Peabody Energy had 9.0 billion tons of proven and probable coal reserves. The company was founded in 1883 and is headquartered in St. Louis, Missouri.

We are recommending the following specific credit spreads.
Call credit spreads = bearish call spreads.
put credit spreads = bullish put spreads.


The issues below are additional candidates to supplement your search for profitable ETF/Holders/Index option trades. As with any investment, you must decide if the selections meet your criteria for potential plays. Only you can know what strategies and positions are suitable for your experience level, risk-reward tolerance and individual outlook. There will be no commentary or analysis offered on these positions, nor will they be included in the Monthly Cash Machine Portfolio.