We are recommending the following credit spreads to start out the MCM August 2012 expiration cycle.

We are recommending credit spreads for Portfolio #1 in the following issues.

KORS - Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded womenÂ’s apparel and accessories, and menÂ’s apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. It operates in three segments: Retail, Wholesale, and Licensing. The Retail segment engages in the sale of womenÂ’s apparel; accessories, which include handbags and small leather goods, such as wallets; womenÂ’s footwear; and licensed products comprising watches, fragrances, and eyewear. As of March 31, 2012, its retail segment had 191 retail stores, including concessions in North America; and 46 international retail stores comprising concessions in Europe and Japan. The Wholesale segment sells accessories, which include handbags and small leather goods, such as wallets; footwear; and womenÂ’s and menÂ’s apparel to department stores and specialty shops in North America and Europe. This segment has 2,027 department store and specialty store doors in North America; and 650 international department store and specialty store doors.

SLW - Silver Wheaton Corp., a mining company, together with its subsidiaries, operates as a silver streaming company worldwide. The company has 14 long-term silver purchase agreements and 2 long-term precious metal purchase agreements whereby it acquires silver and gold production from the counterparties located in Mexico, the United States, Greece, Sweden, Perú, Chile, Argentina, and Portugal. Silver Wheaton Corp. is headquartered in Vancouver, Canada.

ADSK - Autodesk, Inc. provides design software and services to customers worldwide. Its Platform Solutions and Emerging Business segment offers AutoCAD software, a customizable and extensible computer-aided design (CAD) application for professional design, drafting, detailing, and visualization in fields ranging from construction to manufacturing, civil engineering, and process plant design; and AutoCAD LT, a professional drafting and detailing software that includes document sharing capability. The companyÂ’s Architecture, Engineering and Construction segment offers Autodesk Revit products, which provide model-based design and documentation system for architects, structural engineers, and design-build teams, as well as mechanical, electrical, and plumbing engineers; AutoCAD Civil 3D products, which provide a surveying, design, analysis, and documentation solution for civil engineering; AutoCAD Architecture software that includes architecture industry-specific tools to improve coordination; and AutoCAD Map 3D software, which provides direct access to data needed for infrastructure planning, design, and management activities. Autodesk, Inc.Â’s Manufacturing segmentÂ’s products comprise Autodesk Inventor, which offers engineers a set of tools for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation; AutoCAD Mechanical software that accelerates the mechanical design process; and Autodesk Moldflow, which provides tools that help manufacturers optimize the design of plastic parts and injection molds, and study the injection molding process.

APOL - Apollo Group, Inc., through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, masterÂ’s, and doctoral levels. The company offers various degree programs in arts and sciences, business and management, criminal justice and security, education, health care, human services, nursing, psychology, and technology through its campus locations and learning centers in 40 states and the District of Columbia, and Puerto Rico, as well as through its online education delivery system. It also provides various degree programs in Chile and Mexico, and through online; financial services education programs, including Master of Science in three majors, as well as certification programs in retirement, asset management, and other financial planning areas; and training and education to professionals in the legal and finance industries through its schools in the United Kingdom and a network of offices in Europe. In addition, the company offers program development, administration, and management consulting services comprising degree program design, curriculum development, market research, student admissions, and accounting and administrative services to private colleges and universities for their working learnersÂ’ programs; and sells books and other publications. Apollo Group, Inc. was founded in 1973 and is based in Phoenix, Arizona.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

We are recommending credit spreads for Portfolio #2 in the following issues.

LULU - Lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel for women, men, and female youth. The companyÂ’s line of apparel and accessories include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. The company sells its products through a chain of corporate-owned and franchise stores; direct to consumer through e-commerce; and a network of wholesale channel, such as yoga studios, health clubs, and fitness centers. As of January 29, 2012, it had 47 stores in Canada, 108 stores in the United States, 18 stores in Australia, and 1 store in New Zealand under the lululemon athletica and ivivva athletica brand names. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

TM - Toyota Motor Corporation engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles and related parts primarily in Japan, North America, Europe, and Asia. It offers conventional engine vehicles, including subcompact and compact cars under the Corolla, Yaris, micropremium iQ, Passo, Ractis, Vitz, and Etios brand names; mini-vehicles, passenger vehicles, commercial vehicles, and auto parts under the Toyota brand name; mid-size cars under the Camry, REIZ, Avensis, and Mark X brand names; luxury cars under the Lexus and Crown brand names; Century limousines; sports cars under the Scion tC and Lexus brand names; sport-utility vehicles under the Sequoia, 4Runner, RAV4, Highlander, FJ Cruiser, and Land Cruiser brand names; pickup trucks under the Tacoma and Tundra brand names; minivans under the Alphard, Vellfire, Corolla Verso, Wish, Hiace, Regius Ace, Estima, Noah, Voxy, Sienta, Isis, and the Sienna brand names; cab wagons; large, medium, and small trucks; and large, small, and micro-buses. The company also offers hybrid cars primarily under the Prius and Crown brand names. Toyota Motor sells its products through dealers. In addition, it offers a range of financial services comprising retail financing, retail leasing, wholesale financing, insurance, credit cards, and housing loans. Further, the company designs, manufactures, and sells prefabricated housing; is involved in information technology related businesses, such as an e-commerce marketplace known as GAZOO.com; and engages in the sale promotion of KDDI communication related products, primarily the au brand.

FDO - Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. The company offers consumables, including household chemicals, paper products, food products, health and beauty aids, hardware and automotive supplies, and pet food and supplies; and home products comprising domestics, which include blankets, sheets, and towels, as well as house wares, giftware products, and home decor products. It also provides apparel products accessories, which consist of menÂ’s and womenÂ’s clothing products, boysÂ’ and girlsÂ’ clothing products, infantsÂ’ clothing products, shoes, and fashion accessories; and seasonal and electronics products, such as toys, stationery and school supplies, seasonal goods, and personal electronics, including pre-paid cellular phones and services. As of June 28, 2012, the company had approximately 7,200 stores in rural and urban settings across 45 states. Family Dollar Stores, Inc. was founded in 1959 and is headquartered in Matthews, North Carolina.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.