We are recommending the following credit spreads to the January expiration cycle.

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

BP - BP p.l.c. provides fuel for transportation, energy for heat and light, lubricants to engines, and petrochemicals products. Its Exploration and Production segment engages in the oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trading of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL). This segment has exploration and production activities in Angola, Azerbaijan, Canada, Egypt, Norway, Russia, Trinidad and Tobago, the United Kingdom, and the United States, as well as in Asia, Australasia, South America, north Africa, and the Middle East. It also owns and manages crude oil and natural gas pipelines; processing facilities and export terminals; and LNG processing and transportation, as well as NGL extraction facilities. The company’s Refining and Marketing segment is involved in refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum, and petrochemicals products and related services to wholesale and retail customers primarily under the BP, Castrol, and Aral brands. BP p.l.c. also engages in the alternative energy business, as well as offers shipping and treasury services.

GPS - The Gap, Inc. operates as a specialty retailer. The company offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, and Athleta brand names. Its products include assortments, such as denim, khakis, outerwear, tees, and accessories; maternity apparel; women’s loungewear, sleepwear, intimates, and sports and active apparel; and handbags, shoes, jewelry, personal care products, and eyewear. The company also has franchise agreements with unaffiliated franchisees to operate stores in Asia, Australia, eastern Europe, Latin America, the Middle East, and Africa under the Gap and Banana Republic brand names. As of December 18, 2012, it had approximately 3,000 company-operated stores and 300 franchised stores in 90 countries worldwide. In addition, the company offers its products through catalogs, as well as through company-owned Websites. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.

BKS - Barnes & Noble, Inc. operates as a content, commerce, and technology company in the United States. It provides access to books, magazines, newspapers, and other content through its multi-channel distribution platform. It sells trade books, including hardcover and paperback consumer titles; mass market paperbacks, such as mystery, romance, science fiction, and other fiction; children’s books; eBooks and other digital content; NOOK products comprising NOOK 1st Edition, NOOK Wi-Fi 1st Edition, NOOK Color, NOOK Simple Touch, NOOK Tablet, and NOOK Simple Touch with GlowLight eBook reader devices and related accessories; bargain books; magazines; gifts; cafe products and services; educational toys and games; music; and movies. The company sells its products directly to customers through its bookstores and on barnesandnoble.com. It also sells textbooks and course-related materials, emblematic apparel and gifts, trade books, school and dorm supplies, and convenience and cafe items in college and university campuses. The company provides new and used textbooks, as well as textbook rental services; and electronic textbooks and other course materials through NOOK Study, a proprietary digital platform. As of October 23, 2012, the company operated 689 bookstores in 50 states, as well as 667 college bookstores serving approximately 4.6 million students and faculty members at colleges and universities in the United States. Barnes & Noble, Inc. also operates its eBookstore, as well as provides NOOK eReading software. The company was founded in 1986 and is based in New York, New York.

GME - GameStop Corp. operates as a video game retailer. It sells new and used video game hardware; physical and digital video game software; and accessories and other products that primarily include controllers, memory cards, and other add-ons, as well as strategy guides, magazines, and trading cards. The company also offers personal computer (PC) entertainment and other software across various genres, including sports, action, strategy, adventure/role playing, and simulation, as well as products that relate to the digital category comprising network point cards, prepaid digital and online timecards, and digitally downloadable software. GameStop Corp. sells its products primarily through its GameStop, EB Games, and Micromania stores, as well as through its electronic commerce Websites, including gamestop.com, ebgames.com.au, gamestop.ca, gamestop.it, gamestop.es, gamestop.ie, gamestop.de, and micromania.fr. As of October 26, 2012, its retail network and family of brands included 6, 628 company-operated stores in 17 countries worldwide. In addition, the company publishes Game Informer, a video game magazine in the United States; and operates a Website, gameinformer.com, featuring reviews of new title releases, tips, and secrets about games and news regarding current developments in the electronic game industry. Further, it operates an online video gaming Website kongregate.com; and digital PC distribution platforms, Impulse and Spawn Labs. GameStop Corp. was founded in 1994 and is headquartered in Grapevine, Texas.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.


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

WYNN - Wynn Resorts, Limited, together with its subsidiaries, engages in the development, ownership, and operation of destination casino resorts. The company owns and operates two casino resort complexes in Las Vegas, the Wynn Las Vegas and Encore at Wynn Las Vegas with approximately 4,750 hotel rooms and suites; 220 table games; 2,430 slot machines; and 1 poker room in approximately 186,000 square feet of casino gaming space, including a sky casino and private gaming salons; 35 food and beverage outlets; 2 spas and salons; lounges; and approximately 97,000 square feet of retail space featuring various boutiques. Its Las Vegas resorts also offer 3 nightclubs; 1 beach club; 1 Ferrari and Maserati automobile dealership; wedding chapels; golf course; approximately 283,000 square feet of meeting space; 1 theater; and 1 Encore Theater. In addition, the company operates Wynn Macau casino resort and Encore at Wynn Macau resort located in the Macau Special Administrative Region of the People’s Republic of China. Its Macau resorts feature approximately 1,008 hotel rooms and suites; 486 table games; 930 slot machines; and 1 poker pit in approximately 265,000 square feet of casino gaming space, including 1 sky casino and private gaming salons; 8 restaurants; 2 spas and 1 salon; lounges; meeting facilities; and approximately 54,200 square feet of retail space featuring various boutiques, as well as a show in the rotunda.

KMB - Kimberly-Clark Corporation, together with its subsidiaries, engages in manufacturing and marketing health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional and Other, and Health Care. The Personal Care segment manufactures and markets disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and related products under the various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, and Poise. The Consumer Tissue segment offers facial and bathroom tissue, paper towels, napkins, and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, and Page brands. The K-C Professional and Other segment provides apparel, wipers, soaps, sanitizers, tissues, and towels under the Kleenex, Scott, WypAll, Kimtech, and Jackson Safety brands. The Health Care segment offers exam gloves, medical devices, and infection prevention products; and pain management products, respiratory, and digestive health and medical supplies under the Kimberly-Clark and ON-Q brands. The company sells its products for household use directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and retail outlets; through other distributors and the Internet; and away-from-home use products through distributors and directly to manufacturing, lodging, office building, food service, health care establishments, and public facilities.

We are recommending the following specific credit spreads.

Call credit spreads = bearish call spreads.