We are adding two additional plays to our June 2011 recommended list

We are adding credit spreads on the following issues.

SOHU - Sohu.com Inc., an Internet company, provides news, information, video content, entertainment, and communication services in China. The company offers brand advertising services that provide advertisements on its portal Websites to companies that expect to build up their brand awareness online; sponsored search services, which offer placements in search directory, as well as pay-for-click services for small and medium-size enterprises; online games, including massively multi-player online role-playing games; and wireless value-added services, such as news, weather forecast, chatting, entertainment information, ring tones, and logo downloads subscribed over mobile phones. The companyÂ’s products and services include aggregated content on various topics, including news, entertainment, sports, business and finance, information technology, automobile, and women; online video content; streaming online content; and communication and community tools, such as alumni clubs, blogs, email, message boards, and Web messenger. Its Web properties include sohu.com, a mass portal and online media destination; 17173.com, a games information portal; focus.cn, a real estate Website; chinaren.com, an online alumni club; and sogou.com, an interactive proprietary search engine.

RAX - Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It provides information technology (IT) as a service, managing Web-based IT systems for small and medium-sized businesses, as well as large enterprises worldwide. The companyÂ’s service suite includes dedicated hosting comprising customer management portal and other management tools that manage data center, network, hardware devices, and operating system software; and cloud computing that enables customers to provide and manage a pool of computing resources, as well as delivery of computing resources to business when they need them. It offers cloud servers, cloud files, and cloud sites, as well as cloud applications, such as email, collaboration, and file back-ups; and hybrid hosting that provides a combination of dedicated hosting and cloud computing services. The company also offers customer support services. It sells its service suite through direct sales teams, third-party channel partners, and online ordering. The company was formerly known as Rackspace.com, Inc. and changed its name to Rackspace Hosting, Inc. in June 2008. Rackspace Hosting, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.

In addition, we are adding the FDX 87.5/90 call spread to complete an iron butterfly with our FDX June 87/5/85 put spread that we already have creating the iron butterfly.

We are recommending the following specific credit spreads.

Call credit preads = bearish call spreads