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

We are recommending credit spreads in the following issues.

SAP - SAP AG provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. The company?s product portfolio includes SAP Business Suite software, which supports large organizations/international corporations in their core business operations, such as supplier relationship, production, warehouse management, sales, administration, and customer relationship; SAP Business All-in-One, a business management software that helps midsize companies in managing various business functions, including financials, human resources, procurement, inventory, manufacturing, logistics, product development, sales, and marketing; SAP Business One, a business management application for small businesses; and SAP Business ByDesign, an on-demand solution for integrated business management applications. Its product portfolio also comprises SAP BusinessObjects Edge business intelligence and enterprise performance management solutions; Xcelsius, a data visualization software; Crystal Reports, which helps users design interactive reports; Sybase IQ, an optimized analytics server designed to deliver results for business intelligence, analytics, data warehousing, and reporting solutions; SAP solutions for sustainability; and SAP NetWeaver technology platform, which integrates information and business processes across various technologies and organizational structures.

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.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.


In addition we are adding ONE (1), final SEPTEMBER recommendation.

We are recommending a credit spread in the following issue.

JOYG - Joy Global Inc. engages in the manufacture and servicing of mining equipment for the extraction coal, copper, iron ore, oil sands, and other minerals worldwide. The company operates in two segments, Underground Mining Machinery and Surface Mining Equipment. The Underground Mining Machinery segment produces continuous miners, longwall shearers, powered roof supports, armored face conveyors, shuttle cars, flexible conveyor trains, roof bolters, battery haulers, continuous haulage systems, feeder breakers, conveyor systems, high angle conveyors, and crushing equipment, as well as longwall mining systems consisting of powered roof supports, an armored face conveyor, and a longwall shearer. This segment also rebuilds and services equipment, and sells replacement parts and consumables in support of installed base. The Surface Mining Equipment segment produces electric mining shovels, walking draglines, and rotary blasthole drills for open-pit mining operations. This segment also sells used electric mining shovels; and provides logistics and life cycle management support services, including equipment erections, relocations, inspections, service, repairs, rebuilds, upgrades, used equipment, new and used parts, enhancement kits, and training, as well as offers electric motor rebuilds and other products and services to the non-mining industrial segment. In addition, it offers wheel loaders, as well as jack-up rigs and ancillary equipment for the oil and gas drilling industries.

We are recommending the following specific credit spread.

Call credit spread = bearish call spread.