We are adding the following JUNE recommendations to Portfolio #1.

We are recommending credit spreads in the following issues.

STX - Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise, client compute, and client non-compute market applications worldwide. The companyÂ’s products are used in enterprise servers, mainframes, and workstations; desktop and notebook computers; digital video recorders; personal data backup systems; portable external storage systems; and digital media systems. It also provides data storage services for small to medium-sized businesses, including online backup, data protection, and recovery solutions; and ships external backup storage solutions under its Free Agent Go and Free Agent Go Flex product lines. The company sells its products primarily to original equipment manufacturers, distributors, and retailers. Seagate Technology Public Limited Company was founded in 1979 and is headquartered in Dublin, Ireland.

AIG - American International Group, Inc. engages in the provision of insurance products and services for the commercial, institutional, and individual customers in the United States and internationally. The company operates in three segments: Chartis, SunAmerica Financial Group, and Aircraft Leasing. The Chartis segment offers casualty insurance products that cover general liability, commercial automobile liability, workers' compensation, excess casualty, and crisis management coverages; industrial and commercial property insurance products and energy, which covers man-made and natural disaster exposures; environmental, political risk, trade credit, surety, marine, and aerospace insurance products; and various forms of professional liability insurance products. It also provides personal accidental and supplemental health products, including accidental death and disability, accidental medical reimbursement, hospital indemnity, and medical excess; travel insurance products and services; automobile, homeowners, and extended warranty insurance; and life insurance products. This segment distributes its insurance products and services through brokers, agents, and wholesalers. The SunAmerica Financial Group segment offers term life, universal life, accident & health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services. It distributes its products through banks, broker-dealers, financial advisors, independent marketing organizations, insurance agents, structured settlement brokers, benefit consultants, and direct-to-consumer platforms. The Aircraft Leasing segment acquires and leases commercial jet aircraft to airlines.

MCP - Molycorp, Inc., a development stage company, engages in the production and sale of rare earth oxides in the western hemisphere. Its rare earth products include oxides, metals, alloys, and magnets for various inputs in existing and emerging applications comprising clean energy technologies, multiple high-tech uses, defense applications, and water treatment technology. The company primarily owns and operates the Molycorp Mountain Pass facility, an open-pit mine containing rare earth deposits outside of China located in San Bernardino County, California. It also intends to produce and sell rare earth oxides and rare metals in Europe; and rare earth alloys in the United States. Molycorp, Inc. is headquartered in Greenwood Village, Colorado.

LEN - Lennar Corporation, together with its subsidiaries, engages in homebuilding, financial services, and real estate businesses in the United States. Its homebuilding operations include the construction and sale of single-family attached and detached homes; and the purchase, development, and sale of residential land. The company also provides primarily mortgage financing, title insurance, and closing services for the buyers of homes and others. In addition, it invests in distressed real estate assets, as well as engages in sourcing, underwriting, pricing, and monetizing real estate and real estate related assets, and providing similar services to others in markets across the country. As of November 30, 2011, Lennar Corporation owned 94,684 homesites and had access through option contracts to an additional 16,702 homesites. Lennar Corporation was founded in 1954 and is based in Miami, Florida.

WDC - Western Digital Corporation, through its subsidiaries, provides solutions for the collection, storage, management, protection, and use of digital content primarily audio and video worldwide. The companyÂ’s principal product includes hard drives comprising 3.5-inch and 2.5-inch form factors. It provides client compute storage products, such as hard drives under the WD Caviar and WD Scorpio brand names; and solid-state drives under the brand name of WD Silicon Edge for desktop and mobile personal computers (PCs). The company also offers client non-compute storage products, which comprise storage appliances under the My Book, WD Elements Desktop, My Passport, and WD Elements brand names; media players under the WD TV brand name; WD ShareSpace, a network-attached storage system; and WD Livewire, which enables consumers to use their existing electrical outlets to extend Internet connections, as well as offers consumer electronics products under the WD AV brand name for use in DVRs, and audio and video applications. In addition, it provides enterprise storage products, such as hard drives for enterprise and nearline storage applications under the WD S25, WD VelociRaptor, and WD RE brand names; and solid-state drives for embedded applications under the brand name of WD SiliconDrive.

We are recommending the following specific credit spreads.

Call Credit spreads = Bearish call spreads.