ACTION DISPOSITION FOR TOMORROW's JANUARY EXPIRATION.
Portfolio #1: ACTIONS:
The department and retail stores will need some action tomorrow.
We are going to have to close the following issues: (CURRENTLY)
SHLD $45.61 - SHLD Jan (calls) - JAN 42.9/44.4 Call spread - NET DEBIT for is currently $1.40 ($1.25 - $1.55 Bid/Ask).
GPS $32.84 -GPS Jan 32(calls) - $0.83 - $87 BID/ASK - in the money.
FIO $21.49 - FIO Jan 20 (calls) - $1.40 - $1.55 BID/ASK - in the money
You might be able to get a few cents for your long FIO Jan 22, that just depends on bid/ask tomorrow.
LTD $46.94 - LTD Jan 46 (calls) - $0.90 - $1.10 BID/ASK - in the money.
We are going to look to close any and all of the above issues
at the close tomorrow if they remain in the money.
However,if anyone chooses they can look to close out the above positions immediately if we get a down opening tomorrow morning.
BHI(calls) and BHI(puts) aretwo additional issues we need to watch that are on the
watch list even though they are both out of the money, but make up an iron condor on BHI.
We need BHI to close between $42 & $43 so that both the BHI (puts) and BHI (calls) will expire.
If the BHI (calls) look to close abov $43 we will need to act to close out the BHI 43 call.
If the BHI (puts) look to close below $42 we will need to act to close out the BHI 42 put.
However, if BHI closes between $42 and $43 we need do nothing as both the call and put spread would
Keep an eye on BHI and be prepared to act to close if either side looks to close in the money at th close fo
The following issues should look to expire worthless tomorrow unless we get some totally
Those issues are VVUS (calls), UA (calls), GME (calls), NEM (calls), BKS (calls), LLY (puts), JCP (calls),
GPS (puts), BHI(puts), SHLD (puts), URI (puts)
Once again, It is all about retail department stores tomorrow.
We will need to watch all the following issues tomorrow and be prepared to close them out before
JWN (calls), KMB (calls) and TIF (calls) are are in the money going into tomorrow's opening.
JWN and TIF have iron condors and KMB has an iron butterfly, hence if we are forced to close these
positions tomorrow at the close, the JWN, TIF and KMB (put side) would all expire worthless on all three of
HD (calls)( slightly in the money ) and RRC (calls) (slightly out of the money )will be
the other positions that we need to watch and might have to take action on if they end up in the money
at the close tomorrow.
The remaining positions in Portfolio #2 should look to expire worthless tomorrow.
Those positions are: LULU (calls) AEM (calls), DVN (calls), FDX (puts), PM (puts), BIDU (puts)
CAVEAT: Just remember if any position looks to close in the money tomorrow
please be sure to close it out before the close tomorrow, even if it looks to close
even $0.01 in the money.
If you do not you will be exercised or assigned and have stock either put to you
or in most cases this month have stock called away that you probably do not own.
If anything unusual develops you will be emailed tomorrow with any change in action
that may be needed.