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

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

NEM - Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico. As of December 31, 2011, it had proven and probable gold reserves of approximately 98.8 million ounces and an aggregate land position of approximately 31,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

DOW - The Dow Chemical Company manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. Its Electronic and Functional Materials segment offers materials for chemical mechanical planarization, chemical processing aids and intermediates, electronic displays, food and pharmaceutical processing and ingredients, home and personal care ingredients, hygiene and infection control, photolithography, printed circuit boards, process and materials preservation, semiconductor packaging, and electronic and industrial finishing. The company?s Coatings and Infrastructure Solutions segment provides construction chemical solutions and building-integrated photovoltaics; raw materials for architectural paints and industrial coatings; technologies for water purification, desalination, and separation solutions; and specialty monomer products. Its Agricultural Sciences segment offers agricultural crop protection and plant biotechnology products, pest management solutions, and seeds, traits, and oils. The company?s Performance Materials segment produces ethanolamines, ethyleneamines, isopropanolamines, and chelants; chlorinated organic products; polyurethane foams and systems; epoxy resins and intermediates; oxygenated solvents; polyglycols and surfactants; and polyurethane raw materials.

APKT - Acme Packet, Inc. provides session delivery network solutions that enable the delivery of voice, video, data, and unified communications services and applications across Internet protocol (IP) networks. Its Net-Net product family consists of session border controllers that control session delivery across defined border points; session managers, which manage user access and interface application servers; multiservice security gateways for securing session delivery of data and voice services over untrusted Internet and wireless fidelity access networks; and diameter signaling controllers. The company?s Net-Net products also comprise session-aware load balancers that scales border control for SBC, MSG, and DSC deployments; session routing proxies that route sessions to/from access and interconnect borders; application session controllers for enabling server applications to initiate and control sessions; and session recorders, a complete software-based IP session recording solution, which performs session recording for the session delivery network. In addition, it offers purpose-built hardware platforms, including Net-Net 3820, 4500, 9200, and 14000; and Net-Net Central, a management platform that delivers configuration and fault, and performance and security management for its session delivery networks.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

We are recommending the follow specific credit spreads on SLW, SHAW and IR to complete iron condors by adding the following put credit spread positions.

These spreads will require $1,000 each spread in additional margin as the strike prices are three points apart as opposed to our call position which was only 2 points apart. The right brokerage firms only mark one side of the spread with margin in the above cases that would be the put side because they are 3 points apart.

Put credit spreads = bullish put spreads to complete iron condors on SLW, SHAW, IR.

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

NFLX - Netflix, Inc. provides Internet subscription services for TV shows and movies in the United States and internationally. The company offers its subscribers to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers, and mobile devices. It also provides standard definition DVDs and Blu-ray discs to its subscribers. The company was founded in 1997 and is headquartered in Los Gatos, California.

BA - The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates through five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network and Space Systems (N&SS), Global Services and Support (GS&S), and Boeing Capital Corporation (BCC). The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for various passenger and cargo requirements, as well as provides related support services to the commercial airline industry. It also offers aviation services support, aircraft modifications, spares, training, maintenance documents, and technical advice to commercial and government customers. The BMA segment engages in the research, development, production, and modification of manned and unmanned military weapons systems for the global strike, mobility and surveillance, and engagement markets, as well as provides related services. The N&SS segment is involved in the research, development, production, and modification of products and services to assist its customers in transforming their operations through its network integration, information and cyber applications, command, control, communications, computers, intelligence, surveillance, and reconnaissance space exploration and satellites.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.

put credit spreads = bullish put spreads.



We will be closing the ALV call spread on Monday.

The spread is rather large and I am looking to close for a NET DEBIT of $2.00.

As of the close on Friday The BID/ASK was currently $1.65 - $2.30 for the spread.

As usual when we try to close a position, we will look to try and split the BID/ASK. However, we will be closing this position regardless unless we get a down opening on Monday at which we can close at a lower price.

You may have to close the short position initially and then sell the long position to close out the spread because of the larger than normal spread between both the Short August 55 call ( $2.10 - $2.55 ) and also the Long August 60 call ($0.25 - $0.45)

Things could get a little tricky to close as a spread with the larger than average spreads on both options.

However, out goal is to close the position unless it opens lower an out of the money.