We are recommending the following credit spreads to start off the September option cycle.

We are recommending credit spreads in the following issues.

RRC - Range Resources Corporation, an independent natural gas company, engages in the acquisition, exploration, and development of natural gas properties primarily in the Appalachian and southwestern regions of the United States. The company?s Appalachian region drilling and producing activities include tight-gas, shale, coal bed methane, and conventional natural gas and oil production in Pennsylvania, Virginia, Ohio, and West Virginia. It owns 4,969 net producing wells, approximately 2,750 miles of gas gathering lines, and approximately 1.8 million gross acres under lease. The company?s Southwestern drilling and producing activities cover the Barnett Shale of North Texas, the Permian Basin of West Texas and eastern New Mexico, the East Texas Basin, the Texas Panhandle, and the Anadarko Basin of Western Oklahoma. It owns 1,954 net producing wells, as well as approximately 886,000 gross acres under lease. As of December 31, 2010, Range Resources Corporation had had 4.4 Tcfe of proved reserves. It sells gas to utilities, marketing companies, and industrial users.

VRTX - Vertex Pharmaceuticals Incorporated engages in the discovery, development, and commercialization of small molecule drugs for the treatment of serious diseases worldwide. Its product pipeline includes Telaprevir (VX-950), a Phase III clinical trial product for the treatment of hepatitis C virus (HCV) infection; VX-222, a Phase IIa clinical trial product targeting HCV infection; VX-770, a Phase III clinical trial candidate for the treatment of cystic fibrosis; and VX-809, a Phase IIa clinical trial product targeting cystic fibrosis. The company?s products also comprise VX-509, a Phase IIa clinical trial product for the treatment of rheumatoid arthritis; VX-765, a Phase IIa clinical trial product targeting epilepsy; and VX-759, a Phase I clinical trial product for the treatment of HCV infection. It has collaboration agreements with Janssen Pharmaceutica, N.V.; Mitsubishi Tanabe Pharma Corporation; Cystic Fibrosis Foundation Therapeutics Incorporated; Merck & Co., Inc.; and GlaxoSmithKline plc. The company was founded in 1989 and is headquartered in Cambridge, Massachusetts.

SUN - Sunoco, Inc., through its subsidiaries, refines and markets petroleum products, and manufactures chemicals in the United states. It operates in five segments: Refining and Supply, Retail Marketing, Logistics, Chemicals, and Coke. The Refining and Supply segment manufactures petroleum products, including gasoline; middle distillates, such as jet fuel, heating oil, and diesel fuel; and residual fuel oil, as well as commodity petrochemicals comprising refinery-grade propylene, benzene, cumene, toluene, and xylene. This segment sells its products to wholesale and industrial customers. The Retail Marketing segment engages in the retail sale of gasoline and middle distillates, as well as in the operation of convenience stores. As of June 28, 2011, this segment operated approximately 4,900 Sunoco-branded retail locations in 24 states primarily on the east coast and in the midwest region of the United States. The Logistics segment operates refined product and crude oil pipelines and terminals; and acquires and markets crude oil and refined products. As of June 28, 2011, this segment owned and operated 7,600 miles of refined product and crude oil pipelines, as well as approximately 40 active product terminals. The Chemicals segment manufactures, distributes, and markets commodity and intermediate petrochemicals. This segment offers aromatic derivatives including phenol, acetone, bisphenol-A, and other phenol derivatives.

MMM - 3M Company, together with subsidiaries, operates as a diversified technology company worldwide. The company?s Industrial and Transportation segment offers tapes, coated and non-woven abrasives, adhesives, specialty materials, filtration products, energy control products, closure systems for personal hygiene products, acoustic systems products, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles. Its Health Care segment provides medical and surgical supplies, skin health and infection prevention products, inhalation and transdermal drug delivery systems, dental and orthodontic products, health information systems, and food safety products. The company?s Display and Graphics offers optical film solutions for LCD electronic displays; computer screen filters; reflective sheeting for transportation safety; commercial graphics sheeting and systems; and mobile interactive solutions, including mobile display technology, visual systems products, and computer privacy filters. The company?s Consumer and Office segment provides office supply products, stationery products, construction and home improvement products, home care products, protective material products, certain consumer retail personal safety products, and consumer health care products. Its Safety, Security and Protection Services segment offers personal protection products, safety and security products, cleaning and protection products for commercial establishments, track and trace solutions, and roofing granules for asphalt shingles.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.