The MCM February 2012 ended up down $3,410 dollars thanks to last day action
but COG and SWN.
Eventhough we had 14 positions that were profitable, the late volatility on
the final day of options n SWN and COG caused us a problem.
As I mentioned last night we would probably have to deal with SWN and COG
and MON on Frday morning.
I mentioned also that I would be sending you an email to inform how would handle
those three postions on Friday.
You should have received an email within the last 45 minutes of trading today
where we were told to close out the SWN FEB 34 and COG 35 short calls.
In additional I suggested that you execute two (2) iron condors, one on SWN
and the other on COG out to March.
The following iron condors were executed on COG and SWN today for the March expiration.
These two (2) condors should have netted you around $1,500 as shown below.
This should have helped reduce the net loss down to $1,910 for the month.
If you were not able to place these condors because you were away
from your computer or broker dealer contact ( they all were filled today ), you
can still fille them on Tuesday morning near the same net prices.
We will be watching those rolled over positions in at the end of our two
portfolio watch list each day.
We may, if necessary, also decide to roll over other plays that have gone astray,
by using rollouts on selective plays.
You always have that option to roll out, however, doing it in every situation is
not always prudent, unless you have additional margin to spare.
That is why it is a good idea to have extra capital in case we decide to roll out
to the next month.
The roll out strategy can actually be rolled out to the next month, and in some
cases show a profit the next month because you are receiving a credit initially and the March credit
to offset the position you were forced to by back.
Sometimes, however,if a stock makes to big a move over the short strike ( like in one day
or on the last week of the expiration, it may be only possible to minmize some
of the loss, you at least have the opportunity to sell more time, which only the net seller
of an opton can.
We will be adding several positions to our portfolio #1: Which is mae up of
only $50 or less stocks and has somewhat less volatility.
We also will be adding initial positions to our Large Cap Portfolio #2 this weekend.
You will be free to mix and match any of the recommendations.
In additional we will have some additional SUPPLEMENTAL plays for both sides
of the market, when the recommendations on BOTH portfolios get full.
Portfolio #1 will still be based on a $35,000 account and only on occassion
will positions use all the margin available.
In addition, you are not required to use all the recommendatons, but you should
try to diversify as mucha as possible.Once again,look for recommendations this weekend.