Obviously, "Murphy's Law" has made a stop here regarding several of our December positions.
Starting with The close out of the FE Dec 45 call. After the downgrade by Jefferies and Company last week it looked like we would have no trouble with this issue; Obviously I was incorrect, as the stock continued to rise and eventually breaking the strike price in "full
I may have waited a little to long on this one, but I didn't except dollar plus
moves or near dollar plus moves straight up without a pull back to fill the upward gaps in
this issue. So we had to take our lumps and go on.
Unfortuately, in addition to FE we have a little trouble with CYN as well. I suggested
the put spread on CYN that gave us $0.50 premium and would allow us to stay in the position
a little longer, however it looks like the $0.50 received may serve to only soften the potential blow against the CYN call spread if we are force to close it out for more than $1.20 by this Friday ( if not sooner).
Additionally, adding to our problems was the surprise move today of CRK (over $2.45)
to close a few ticks above our short CRK DEC 40 call strike,( in afterhours CRK is off $0.89, trading at $39.24. Hopefully, this price will continue through tomorrow,if not We might have to deal with that issue as well some time this expiration week, if not tomorrow.
Finally, APOL jumped over $5.45 today as a law suit was settled ( for $78.5 million) regarding recruiter compensation. It is amazing how the timing of this settlement comes on option expiration week.
Anyway, eventhough we have over $3.00 of protection until Friday, it was nicer having 8 points on Friday with a week to go instead. Please keep this one in your radar.
APEI, also is following in APOL's footsteps and comes within one point of the APEI short strike price. However, its lower volatility should give us a little relieve. We should keep a watchful eye on this one also.
REMAINING MCM DECEMBER POSITIONS:
CSTR, CYOU, GENZ, AMGN, CRL and NFLX should be okay, however as long as "Murphy's Law"
exists, we need to respect that possibility of anything happening.