Disposition for Expiration Friday September.
AIG, ATI, CMA, COF, DECK, DO, PCL, SLB all should expire worthless tomorrow
unless we have some unforeseeable event tomorrow. But, as with any position, we still
have to be prepared to close out any option position that looks to close above our
call short strike price, or below our short put price before the close of trading tomorrow
or we will be assigned stock if our short position is in the money, or having stock
called away, that we may not own, if the call option ends up in the money. This is
true even if the option is only $0.01 in the money
Issues to pay attention to tomorrow.
These are the three (3) issues that we should probably watch for during tomorrow's expiration.
DOW, GRMN and SHLD.
DOW $26.41- is $0.59 out of the money and being a relatively low volatility stock we should be able to come out on this on okay. If anyone wants to be careful you can put on a STOP at $0.10 ( current Bid/Ask $0.03 - $0.04 ), but we are going to HOLD this position and deal with its disposition
at the close, if necessary
SHLD $68.84 - is out of the money and can be volatile, which is one of the reasons we lowered the STOP from $2.20 to $0.95 yesterday. We are going to remove our stop for tomorrow and like DOW, we are HOLDING the position and will deal with SHLD's disposition at the close. However if anyone wants to be conservative here they could lower their STOP on the SHLD Sept 70
short Call to a STOP at $0.40 or whatever they feel they are willing to risk.
GRMN $29.68 - is $0.32 out of the money going into tomorrow. If you desire you can
pick a STOP point on the stock or wait and close out the option at the the option for tomorrow or if you are going to be away from your computer a contingency order to Buy MARKET ON CLOSE if it looks like GRMN is going to close above $30. We will be HOLDING the position until the close like DOW and SHLD and deal with GRMN's disposition at the close. However, if you would like to be safe you can put in a STOP order above the current option price for the Sept 30 short call ( closed $0.11 - $0.14 )
somewhere above $0.15 or more depending on your risk tolerance.
Remember, if anything unforeseeable should happen and any of the other issues should look to close above the short call prices, you need to be sure they are closed out before the close of market hours tomorrow.
In case there is a large GAP opening to the upside that influences our other positions that were not of immediate consequence, we will email you instructions on how to handle those positions if any of them need to be acted upon tomorrow.