Action for Tomorrow.
Tomorrow is expiration Friday for the December cycle.
Here is how we stand going into tomorrow.
Issues of concern:
CRK - is in the money by $0.09, we might have had an opportunity to close out
today for $0.30, but that may or may not be a blessing in disguise.
We are looking to close out the position for $0.20 ( if possible ), so let's put in
a STOP limit at $0.20. This way we should gap down we have our stop in place, but if we gap up on the open, we can take a look at where we need to close out the position, if it is necessary. With the price of $40.09, this issue could go either way, with both sides fighting the $40 strike price tomorrow.
If we need make any adjustments you will get an email before the close.
Finally in regards to CRK, if it closes below $40.00 we need to do nothing. However, please remember you must close out the CRK short 40 call
if the issue looks like it is going to close above $40. You can put in a market on close if you are not going to be able to watch tomorrow for any updated emails. Just remember, no matter what if CRK is going to close above $40 you must close out the position BEFORE the close. Once again, if you are not going to be near your computer, you can achieve the close out with a MARKET ON CLOSE order.
CYN - closed at $40.35 today, considering the $0.35 of intrinsic value and the one day time premium tomorrow let's put in a STOP limit at $.55 and hope we open lower and that will act as our buffer, if we get a lower open and than a climb. If we gap open and it looks like we might not be able to get a close for at the maximum $0.55 with our STOP Limit, you will
be advised by email if we gap open or need to close out the position early. Remember we also have a put spread on with a strike of $40. So we are going to have to close one of the two sides out tomorrow as there is only a very small possibility that the close could end up exactly at $40. So be prepared to close one of the two sides. The call side if over $40 near the end of the close if we have not been stopped out at $0.55 or close out the put side if CYN looks to close under $40, but only if CYN looks to close under $40. Remember the put side is $0.35 out of the money and the call side is $0.35 in the money.
NFLX - closed at $53.73it needs to be watched, mainly because it is slightly more volatile than our other positions that are out of the money. Eventhough the option is only $0.10 - $0.15 and $1.23 out of the money. The only reason I suggest we watch it is that the stock was off over $1.35 today and has dropped over $4.50 over the previous 3 sessions as a whole.
Let's watch it and if it looks like it is going to close below $52.50 at the close we might have to act on this one as well, but only if it appears to be closing
under $52.50 at close tomorrow.
That is unless you would like to own 1,000 shares of NFLX at $52.50., which should not be the case.
APOL an APEI cooled down today as Educational stocks got hit hard. They should be be okay as APOL is now over $7.00 out of the money and APEI is $1.47 and less volatile by a lot.
REMAINING MCM DECEMBER POSITIONS:
CSTR, CYOU, GENZ, AMGN, and CRL should all be okay, however as long as "Murphy's Law" exists, we need to respect that possibility of anything happening.
In closing, just remember if Murphy should appear, any issue that may appear to be closing in the money at the end of tomorrow's trading day needs to be closed out.
In addition, be prepared for an email tomorrow during trading hours if any unusual event should transpire and we need to change or to add parameters for exiting or evaluating any of the December positions.
Recap tomorrow, January watch list Friday and Additional January positions to be added over the weekend.