Options Animal Special Report

Market Greenhouse, LLC P.O.
Box 10065, Wilmington, NC 28404 telephone: 910-681-0477

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S P E C I A L R E P O R T

Best Stocks, ETFs, and Options Plays for 2012

A New Years Resolution
Everyone Can Appreciate

Published by Market Greenhouse, LLC
Market Greenhouse, LLC P.O. Box 10065, Wilmington, NC 28404 telephone: 910-681-0477

Everyone prepares for a new year in different ways. Many resolve to eat better and get to the gym
more regularly. Some decide to make this the year that they finally kick a terrible habit. For others, the
goal is a more spiritual or psychic one and they commit to seeing the positive, spending more time with
family, or spending more time alone.
Whichever New Years resolution speaks to you, there is one goal that most of us share. The goal to do
a better job of managing, growing, and protecting our money.
How, in 2011, a year in which the S&P 500 provided only five points above the previous years close,
can we expect much more from 2012? Can we make more money this year than last and, more
importantly, can we protect what we make against future losses?
In a word, yes.
We have a great list of stocks to watch, buy, and enjoy in the New Year. This can be your best year
ever. So watch the salt, get to the gym, take more walks, and make these stocks part of your better
you resolution!
1. WDC: Western Digital Corporation

Western Digital Corporation (WD) is a provider of solutions for the collection, storage,
management, protection and use of digital content, including audio and video. Its principal
products are hard drives, which are devices that use one or more rotating magnetic disks
(magnetic media) to store and allow access to data. Its hard drives are used in desktop and
notebook computers, corporate and cloud computing data centers, home entertainment equip-
ment and consumer storage devices. In addition to hard drives, its other products include solid-
state drives and home entertainment and networking products. The Company operates as the
parent company of its hard drive business, Western Digital Technologies, Inc.

Fundamentals: Western Digital Corporation designs, develops, manufactures, and sells hard
drives. It sells its products worldwide to original equipment manufacturers (OEMs) and original
design manufacturers (ODMs) for use in computer systems, subsystems or consumer electronics
(CE) devices, and to distributors, resellers, and retailers.

The company recently announced they are restarting their Thailand production facility earlier
than expected after flooding in that region. Also, they beat earnings expectations in 4 out of the
last 5 quarters. Finally, the next earnings in January, 2012, may propel this stock above resistance
provided by the 200 SMA at $32.40 per share.
Potential Trade Strategies:
OTM Long-Term Bull Puts
ITM or ATM Covered Calls
Current Month Bull Put
Bull Call Calendar


2. MON: Monsanto

Monsanto Company (Monsanto), along with its subsidiaries, is a provider of agricultural
products for farmers. The Company's seeds, biotechnology trait products, and herbicides provide
farmers with solutions that improve productivity, reduce the costs of farming, and produce better
foods for consumers and better feed for animals. It manages business in two segments: Seeds and
Genomics, and Agricultural Productivity. In April 2010, the Company completed the acquisition
of a corn and soybean processing plant located in Paine, Chile from Anasac, a company that
provides seed processing services. In October 2009, the Company completed the acquisition of
Seminium, S.A. (Seminium), a corn seed company. In February 2011, the Company acquired
Divergence, Inc. In September 2011, the Company acquired Beeologics.

Fundamentals: Monsanto is a provider of agricultural products for farmers. The Company's
seeds, biotechnology trait products, and herbicides provide farmers with solutions that improve
productivity, reduce the costs of farming, and produce better foods for consumers and better feed
for animals. It manages business in two segments: 1. Seeds and Genomics, and 2. Agricultural
Productivity.

Last earnings and guidance in October, 2012, were received very well by the market and the stock
moved from $60 to more than $70 in a matter of days. It has since given back some of the gains
but is sitting pretty at the 200 SMA at $69.55 per share.
Iron Condor
Call Calendar
Long-Term OTM Bull Put
OTM Covered Call

3. KO: Coca-Cola Company

The Coca-Cola Company is a non-alcoholic beverage company. The Company owns or
licenses and markets more than 500 non-alcoholic beverage brands: primarily sparkling
beverages but also a variety of still beverages such as waters, enhanced waters, juices and
juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.

Fundamentals: Coca-Cola (KO) has been raising dividend payouts during the recession and
has rallied this year despite a stagnant market. The stock is also very low beta, which means it
can weather possible turbulence in 2012.
Bull Put
Long-Term OTM Covered Calls
Long Stock
Bull Call Calendar (after a pullback to support)


4. ABT: Abbott Laboratories

Abbott Laboratories is engaged in discovery, development, manufacture, and sale of a diversi-
fied line of healthcare products. It has four segments: 1. Pharmaceutical Products, which include
a line of adult and pediatric pharmaceuticals manufactured, marketed, and sold directly to whole-
salers and healthcare facilities; 2. Diagnostic Products, which include a line of diagnostic systems
and tests manufactured, marketed, and sold to hospitals and commercial laboratories; 3. Nutritional
Products which include a line of pediatric and adult nutritional products, and Vascular Products
which include a line of coronary, endovascular, and vessel-closure devices for the treatment of
vascular disease.
On February 15, 2010, it acquired the Solvay Groups pharmaceuticals business. In March 2010,
it acquired Starlims Technologies Limited. In April, 2010, it acquired Facet Biotech Corporation.
On September 8, 2010, it acquired Piramal Healthcare Limiteds Healthcare Solutions business.

Fundamentals: Abbott is a U.S.-based, large, multi-national company with a long history of
stability. In October, 2011, they announced that they are spinning off Humira, the biologic used
to treat rheumatoid arthritis, Chrohns disease, psoriasis, and other autoimmune disorders. This is
not the first time Abbott has spun off a business unit. Investors rejoiced at the news, as the stock
price soared on volume that was 286% above its average daily volume. The company pays a
dividend with a yield of approximately 3.4%.

Covered Call
Cash-Secured Put
Call Calendar

5. MCP: Molycorp, Inc.

Molycorp, Inc. is a rare earth oxide (REO) producer in the Western hemisphere and owns
a rare earth project outside of China. The company is in its development stage, focused on
becoming an integrated producer of rare earth products including oxides, metals, alloys, and
magnets.
The companys rare earth products are used in a range of applications including clean energy
technologies such as hybrid and electric vehicles and wind power turbines; multiple high-tech
uses including fiber optics, lasers, and hard disk drives; numerous defense applications such as
guidance and control systems and global positioning systems, and; advanced water treatment
technology for use in industrial, military, and outdoor recreation applications.

Subsidiaries include Molycorp, LLC, and Molycorp Minerals, LLC. In October, 2011, the com-
pany purchased the remaining interest in Molycorp Silmet AS.

Fundamentals: Molycorp, Inc. made its initial public offering (IPO) in July, 2010, at the peak
of world interest in rare earth minerals. These minerals have remained vital to much of the
technological innovation occurring around the world. China produces 98% of all REOs and
reduced export quotas several times in 2011. With so little history, Molycorps fundamental data
is unproven.

Married Put
Call Calendar
Covered Call
Collar Trade

6. RAX: Rackspace Hosting

Rackspace Hosting, Inc. (Rackspace Hosting) operates in the hosting and cloud computing
industry. It offers its products under the Fanatical Support brand. As of December 31, 2010, the
companys products are sold to businesses in more than 120 countries.
During the year ended December 31, 2010, it served more than 130,000 business customers and it
managed more than 66,000 servers, 2,100,000 e-mail accounts, and 417,000 cloud hosting domains.

In August, 2010, the company launched Cloud Servers for Windows. In December, 2010, it intro-
duced two products: 1. Rackspace Cloud and, 2. Critical Sites, to serve the Enterprise market. The
Rackconnect offers customers an integration of the Rackspace Cloud and dedicated hosting. The
Critical Sites service level provides monitoring for customers who rely on their websites and
applications as mission critical components of their business.

In January, 2011, the company launched Cloud service in the United Kingdom.

Fundamentals:
Earnings have been demonstrating more than 30% growth for seven quarters in a row. Sales
revenue has exhibited more than 20% growth for the same time period. Debt is low, while cash
flow is very healthy, 350%+. Cloud computing is here to stay and Rackspace Hosting is a leader
in the field.

Collar Trade
Covered Call
Married Put
Cash-Secured Put
Long Call

7. VZ: Verizon Communications, Inc.

Verizon Communications, Inc. (Verizon) is a provider of communications services. Verizon
operates in two segments: 1. Domestic Wireless and, 2. Wireline.

The Domestic Wireless products and services include wireless voice and data services and
equipment sales across the United States.

Wirelines communications products and services include voice, Internet access, broadband video
and data, next generation Internet protocol (IP) network services, network access, long distance,
and other services. It provides these products and services to consumers in the United States as
well as to carriers, businesses, and government customers both in the United States and 150 other
countries worldwide.

Fundamentals: VZ just isnt that good. I wont try to convince you otherwiseone look and
there are few good things to say about it. VZ's LT Debt/Equity is above 1 and the PEG is almost
1.5. It would be best if both are below 1.

VZs PE compared to the industry is not good either. Revenue growth is also low compared to the
industry. The ones that work for me are the option chains, dividend record, and the chart. VZ has
good consistent cash flow and regular dividend increases.

Sentimental AnalysisVZ has recently fought the market to get to a 52 week high. It seems the
market really likes what VZ and its dividend are doing.
Fundamental Analysis: VZ typically rises into ex-dividend and falls afterward.
I will be trading bull puts into the ex-dividend dates and ITM, out in time covered calls from the
day before the ex-dividend date to a bottom. If it doesnt drop after the dividend Ill use more
aggressive bull puts. With the dividend, bull puts and covered calls VZ provide easy, consistent
cash flow.
In The Money Bull Puts
Covered Calls

8. USO: United States Oil ETF

The USO seeks to reflect the performance of the spot price of West Texas Intermediate light,
sweet crude oil delivered to Cushing, Oklahoma, by investing in a mix of oil futures contracts
and other oil interests.

Fundamental Analysis: It is oil futures, so it moves with oil. The option chains are quite good.
Do an Internet search on United States Oil Fund. Youll find articles with reasons to not own
USO. I rarely own USOthere is way too much money to be made using option strategies
to own USO.

USO rises when the Middle East is unstable and drops when there are concerns about the
economy.
Out of The Money Bull Puts

Bull Call Calendar
Bear Calls

9. SLW: Silver Wheaton Corp.

Silver Wheaton Corp. (Silver Wheaton) is a mining company that generates its revenue
primarily from the sale of silver.

As of December 31, 2009, the company had entered into 13 long-term silver purchase agreements
and two long-term precious metal purchase agreements. The company has nine business segments:
the silver produced by the Luismin, Zinkgruvan, Yauliyacu, Penasquito, Cozamin, Barrick and
other mines, the silver and gold produced by the Minto mine and corporate operations. Its 100%
wholly owned subsidiaries include Silver Wheaton (Caymans) Ltd. and Silverstone Resources
(Barbados) Corp. The Luismin operations consist of the San Dimas mine, the Los Filos mine
and the San Martin mine. The Yauliyacu mine is located in central Peru. The company has an
agreement to acquire an amount equal to 25% of the silver produced from Goldcorps Peasquito
mining operations in Mexico for the life of the mine.

Fundamental Analysis: SLWs option chains are fantastic. Trades are very adjustable. SLW
has a PEG below 1 and Trademonsters fundamental analysis tool rate gives it an A.
Dynamic Collar Trade
Bear Put Calendar
Covered Call

10. IBM: International Business Machines Corporation

International Business Machines Corporation (IBM) operates under five segments:
1. Global Technology Services (GTS); 2. Global Business Services (GBS); 3. Software Systems;
Technology, and; 5. Global Financing.

GTS primarily provides IT infrastructure services and business process services. GBS primarily
provides professional services and application management services. IBMs Software segment
consists primarily of middleware and operating systems software.

Global Financing invests in financing assets, leverages with debt, and manages the associated risks.

In April, 2011, the company acquired TRIRIGA, Inc. In October, 2011, the company acquired i2.
In October, 2011, the company acquired Algorithmics. In October, 2011, it acquired Q1 Labs Inc.

Fundamental Analysis: IBM is rock solid. IBMs management ranks among the best with ROE,
ROA, and ROIC values that exceed 90% of the industry and sector and S&P 500. The balance
sheet is strong with more than $48 billion dollars in current assets and more than $113 billion
dollars in total assets. Long-term liabilities amount to $21 billion dollars.

IBM currently has a P/E ratio of 14.55 which is slightly higher than that of the S&P 500 and
slightly higher than its average projected growth rate over the next 5 years (10.71% annually).
My expectation for 2012 is that IBM will continue to range between 170 and 200.
Potential Trade Strategies: Based on the above expectation, there are several trades that would
make sense. All of them have one thing in commonthey are theta positive.
Bull Puts
Bear Calls
Iron Condors
Calendars and Diagonals

11. GM: General Motors Company

General Motors Company is a global automotive company. It develops, produces, and markets
cars, trucks, and parts worldwide.

GM also provides automotive financing services through General Motors Financial Company,
Inc. (GM Financial), formerly AmeriCredit Corp. (AmeriCredit). These financing operations
consist principally of financing automobile purchases and leases for retail customers.

The company operates in five segments: 1. GM North America (GMNA); 2. GM Europe (GME);
3. GM International Operations (GMIO); 4. GM South America (GMSA), and; 5. GM Financial.

GM Financial is an automotive finance company. GM Financial purchases automobile finance
contracts for new and used vehicles purchased by consumers primarily from franchised and select
independent dealerships.

On October 1, 2010, GM completed the acquisition of GM Financial. In February, 2010, GM
completed the sale of Saab Automobile AB (Saab). In May, 2010, the company completed the
sale of Saab Automobile GB (Saab GB).

Fundamental Analysis: The industry is small; there are only a few competitors (Ford being
the most credible). GM emerged from bankruptcy with a much healthier balance sheet than its
competitors and though 2010 saw degradation to parts of the balance sheet, my expectation is
that GM will show improvement in 2011.
My expectation for 2012 is that GM will provide an improved balance sheet for 2011 and
increased sales and profit numbers. I expect that the stock price will rise back toward $25/sh
by the end of 2012.
This is simply a valuation play. GM trades with P/E ratio of 4.48 very low. It could go lower,
but I suspect that with rising demand and increasing sales numbers, it is at a low now.

Covered Calls
Collar Trades
Bull Puts
Call Calendars
Put Calendars
Double Diagonals

12. DIS: The Walt Disney Company

The Walt Disney Company, together with its subsidiaries, is a diversified worldwide
entertainment company.

The company operates in five segments: 1. Media Networks; 2. Parks and Resorts; 3. Studio
Entertainment; 4. Consumer Products, and; 5. Interactive Media.

The company has a 51% effective ownership interest in Disneyland Paris, a 5,510-acre
development located in Marne-la-Vallee, approximately 20 miles east of Paris, France.

The company manages, and has a 40% equity interest in, Euro Disney S.C.A. The company
holds an 18% equity interest in The Active Network, Inc. The company owns a 47% interest
in Hong Kong Disneyland Resort through Hong Kong International Theme Parks Limited.

On December 31, 2009, the company completed an acquisition of Marvel Entertainment, Inc.
(Marvel). On March 31, 2010, the Company acquired Retail Networks Company Limited. On
August 27, 2010, the Company completed the acquisition of Playdom, Inc.

Fundamental Analysis: For the nine months ending July 2, 2011, The Walt Disney Company's
revenues increased 8% to $30.47B. Net income increased 20% to $4.01B. Revenues reflect
an increase in income from Media Networks segment, and increased revenue from Consumer
Products segment. Net income also reflects a decrease in restructuring and impairment charges.
The company mainly deals in consumer products and Media Networks.
Out of The Money Bull Puts
Iron Condors

13. WFM: Whole Food Markets, Inc.

Whole Foods Market, Inc. is a natural and organic foods supermarket. As of September 25,
2011, Whole Foods Market operated 311 stores in the United States, Canada, and the United
Kingdom.

The companys stores average 38,000 square feet in size and 10 years in age, and are supported
by its Austin headquarters, regional offices, distribution centers, bake house facilities, commissary
kitchens, seafood processing facilities, meat and produce procurement centers, and a specialty
coffee, tea procurement, and roasting operation.

As of September 25, 2011, it operated 311 stores, of which 299 stores operated in 38 United
States and the District of Columbia; seven stores in Canada, and; five stores in the United
Kingdom. It owns 12 stores, two distribution facilities, and land for one store in development,
including the adjacent property. It also owns a building on leased land, which is leased to third
parties, and has one store in development on leased land.

Fundamental Analysis: WFM has beat earnings for the past 4 quarters in a row.

For the forty weeks ending July 3, 2011, Whole Foods Market, Inc.'s revenues increased
12% to $7.75B. Net income applic. to Common increased 46% to $267.1M.

Revenues reflect an increase in store sales. Net income also reflects an increase in gross margin,
a decrease in pre-opening expenses, substantial fall in relocation, store closure and lease
termination costs, a rise in operating margins, and a decrease in interest expense.
Out of the Money Bull Puts
Iron Condors

14. MSFT: Microsoft Corporation

Microsoft Corporation is engaged in developing, licensing, and supporting a range of software
products and services. It also designs and sells hardware and delivers online advertising to the
customers. It has five segments: 1. Windows & Windows Live Division (Windows Division);
2. Server and Tools; 3. Online Services Division (OSD); 4. Microsoft Business Division (MBD),
and; 5. Entertainment and Devices Division (EDD).

Its products include operating systems for personal computers (PCs), servers, phones, and other
intelligent devices; server applications for distributed computing environments; productivity
applications; business solution applications; desktop and server management tools; software
development tools; video games, and; online advertising.

Its cloud-based computing services include Bing and Windows Live Essentials suite.

In October, 2011, it acquired Skype Global S.a r.l. In November, 2011, the company acquired
VideoSurf Inc.

Fundamental Analysis: For the fiscal year ending June 30, 2011, Microsoft Corporation's
revenues increased 12% to $69.94B. Net income increased 23% to $23.15B.

Revenues reflect an increase in income from Server & Tools segment, higher income
from Online Services divisions, Microsoft Business segment and Entertainment and
Devices segments. Net income also reflects an increase in operating income and a
decrease in provision for income taxes.
Out of the Money Bull Puts
Iron Condors

____________________________________________________________________

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Market Greenhouse, LLC P.O.

Box 10065, Wilmington, NC 28404 telephone: 910-681-0477

Out of The Money Bull Puts

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