We are recommending the following credit spreads to our MCM October expiration cycle.
We are recommending credit spreads in Portfolio #1 in
the following issues.
BBY - Best Buy Co., Inc. operates as an e-commerce and physical retailer of consumer electronics in the United
States, Europe, Canada, and China. The companyÂ’s stores offer video products, including televisions, e-readers, navigation
products, digital cameras and accessories, digital camcorders and accessories, and DVD and Blu-ray players; audio
products, such as MP3 players and accessories, home theater audio systems and components, and musical instruments; and
mobile electronics comprising car stereo and satellite radio products. Its stores also provide computing and mobile phone
products consisting of notebook and desktop computers, tablets, monitors, mobile phones and related subscription service
commissions, hard drives and other storage devices, and networking equipment, as well as office supplies and other related
accessories, such as printers; entertainment products, including video gaming hardware and software, DVDs, Blu-rays, CDs,
digital downloads, and computer software; and appliances. In addition, the company offers service contracts, extended
warranties, computer-related services, and product repair, as well as delivery and installation services for home
theaters, and mobile audio and appliances; and provides snacks and beverages. It operates retail stores and call centers,
as well as online retail operations under various brand names, such as Best Buy, Best Buy Mobile, The Carphone Warehouse,
Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales, Cell Shop, Connect Pro, Best Buy Express, and The
Phone House. The company also operates BestBuy.com, BestBuy.ca, BestBuyMobile.com, CarphoneWarehouse.com, FutureShop.ca,
and PhoneHouse.com. Best Buy Co., Inc. has a strategic partnership with Microsoft Corporation to create the Windows
Stores. The company was formerly known as Sound of Music, Inc. and changed its name to Best Buy Co., Inc. in 1983. Best
Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota.
MSFT - Microsoft Corporation (Microsoft) develops, licenses, and supports software, services, and hardware
devices worldwide. Its Windows division offers Windows operating system; Windows Services suite of applications and Web
services, including Outlook.com and SkyDrive; Surface RT and Pro devices; and PC accessories. The companyÂ’s Server and
Tools division provides server software, cloud-based services, and solutions; and training and certification to developers
and information technology professionals; and builds standalone and software development lifecycle tools for software
architects, developers, testers, and project managers. Its products include Windows Server operating systems, Windows
Azure, Microsoft SQL Server, Windows Intune, Windows Embedded, Visual Studio, System Center products, Microsoft consulting
services, and Premier product support services. MicrosoftÂ’s Online Services division offers online information and content,
including Bing, Bing Ads, and MSN. The companyÂ’s Microsoft Business division provides software and online services, such as
Microsoft Office system consisting of Microsoft Office, SharePoint, Exchange, Lync, Yammer, and Microsoft Office project
and office Visio; and Microsoft Dynamics business solutions, including Microsoft Dynamics ERP and Dynamics CRM, as well as
Microsoft Office Web Apps and Microsoft Office 365, which are online service offerings. MicrosoftÂ’s Entertainment and
Devices division offers products and services designed to entertain and connect people. Its products include Xbox
entertainment platform, including Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 video games,
and Xbox 360 accessories; Xbox LIVE; Skype; and Windows Phone. The company markets and distributes its products and
services primarily through original equipment manufacturers, distributors, and resellers, as well as through online.
Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington.
We are recommending the following specific credit spreads.
Call credit spreads = Bearish call spreads.
We are recommending the following action in Portfolio #3 in
the following issue.
Portfolio #2: ALERT We are placing a Good til canceled BUY STOP order on VVUS October 11/13 call spread to close the
We are placing a BUY STOP on the VVUS October 11/13 call spread at a $0.60 NET DEBIT
If the BUY STOP PRICE is triggered we will be stopped out of the spread and the spread will be closed.
If the BUY STOP PRICE is not triggered we will continue to hold the position and may even lower the stop later.