Disposition or Action for Friday's May expiration cycle:
The disposition on following call spreads should expire worthless unless we get a extraordinary run to the upside tomorrow and I mean an extraordinary run.The following call spreads are all over 10 points out of the money and should expire worthless.
DO, MEE, MON, MCO, RIMM, AMAG.
In addition the following call spreads in these issues should also expire worthless:
Call spreads on ABT, HNT, AMGN, AMSC.
The AMSC call spread = looks like it is going to expire worthless as the stock is trading less than $29, so we have $2.00 plus cushion of protection from the $31 short call strike.
A Position that we might need to watch are as follows:
AIG put spread = as it is still over $2.00 out of the money, but may need to be watched and closed if it tries to close under $32 tomorrow. It is currently still $34.60, so we have some room for tomorrow.
The Positions that we will need to act are as follows:
SBUX call and put spread with both the call and put short price being at the $26 strike price.
This one is simple we will close out the side that is in the money tomorrow
at the close.
Just as a reminder, in any case, any option that will close in the money needs to be closed out before the end of the market day on Friday or you will be assigned ( if a short put),or exercised ( if a short call )
Once again, please be sure to close out any position that might happen to close in the money that we have not discussed, if any unforeseen action should happen on Friday.
The June watch list will be followed tomorrow after the close and the Final May results and the current June results will be listed in the portfolio as well.