July option expiration on S & P 500 futures

We have had a wild ride the last 3 weeks. Since we placed the 1180-1160 July put spread recommendation on July 1, 2008, the S & P 500 September futures have been from 1261, when we placed the trade, to a high of 1293, to a low of 1201, and settled today, July 18th, 2008 at 1260.

As we had mentioned on July 1, 2008, "Although we might see a further slide in the market, we feel that we will see a rise from the recent low. We believe that the S&P 500 will not drop more than 6 % or below 1180, within the next 23 days."

The 1180-1160 put spread expired worthless today. Value of the put spread when the market was at a low of 1201 was less than our risk parameter of 2.5 times what we have collected in premium.

We are looking for the market to possibly continue its rise for another 1% to 2 %. We will look to sell the end of month call spreads on the July contract within the next few days.

To discuss setting up a monthly S&P Income generating program for you, give us a call
Stephen Zielinski
Mercury Capital Management, LLC

Website http://www.mercury-capital-management.com

There is a risk of loss trading futures and options. Past performance does not necessarily indicate future results. Trade with risk capital only. Commodity trading is not appropriate for all investors. This recommendation is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures and options trading involve risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. In no event should the content of this market letter be construed as an express or an implied promise, guarantee or implication by or from Mercury Capital Management that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance.