We are recommending the following credit spread for the November cycle in our Portfolio #1.

By adding this position we will be completing an iron butterfly on our SNDK position.

The addition of this position will require no additional margin

This additional spread should help us offset some lose, if we are forced to close out the spread on our call side of SNDK.

As with any position, this additional position could also lose money just as any of our current positions are capable of during.

However, with the butterfly on SNDK we are going to profit on one side or the other and if we have to take a loss it would reduce the loss on the SNDK put side by $0.30 or if the call side goes against us $0.30 on the call side

We are recommending the following specific credit spread.

Call credit spread = bearish call spread.

By adding the following call credit spread we will be creating an iron condor on our SNDK position.