Disposition for April 15 2009 expiration
All Positions on the call and put side should expire worthless
except the COH( call ) position, unless we get a surprise visit from
COH (Calls) - currently will probably finish in the money tomorrow
unless we get a pullback before tomorrow's close under $52.50 and if that
happens we would have to close out the COH (puts) from our iron butterfly.
Tomorrow we are looking to close the COH (calls) for a limit of $1.60 - $2.00 on the opening
or less if we have a down opening.
However, some of you may decide to hold the position until the close of the market and buy to close out the COH (calls)
with a MARKET ON CLOSE order, hoping for a close, closer to the $52.50 strike price
for a lower net debit to close out the COH (call spread).
If we open down we will close out the COH call side on that opening.
However, if we open higher we will hold the position and close out the
position at the close.
ONE CAVEAT: If COH continues to climb tomorrow and goes over $55
near the close we may have to close out both the short 52.50 call an the long 55
call for a NET DEBIT of $2.50 ( which would be the maximum loss that we can suffer)
no matter how high the COH call spread drops.
Just something to ponder.
Remember, as in every expiration, if by some unexpected event, and of our other
positions should look to close in the money, you must be prepared to close them out
before the close of the market tomorrow.
Hopefull and more likely this should not be the case tomorrow.
This is the last MCM April Watch list report, as tomorrow the APRIL positions
go off the board.
Even after the close tomorrow of COH, we will show a profit for the month of
April, the amount will depend on the price we close out the COH ( call ) spread for.
Tomorrow afternoon look for the April recap and The First MCM May Watch list and
MCM May Portfolio.