FINAL MCM MAY 2013 Disposition of open positions for Friday's expiration.
NTAP call spread - NTAP closed up $2.24 and went deep into the money against our NTAP short $36 call.
We will more than likely have to close out the NTAP 36/37 call spread for $1.00 before the close unless
we get a major pullback in NTAP tomorrow. Be prepared to close out this call spread for a NET DEBIT of $1.00
if the stock does not drop under $37 tomorrow.
We will probably be closing for the $1.00 NET DEBIT tomorrow before the close.
HPQ - HPQ 21 short call is $0.36 tomorrow, unless we get a $0.36 drop in HPQ tomorrow we will have
to close out the HPQ 21 short call before the close tomorrow.
However. if we get a pullback of that $0.36 we could find the HPQ 21 call possibly expiring, however
HPP would need to close below $21 tomorrow.
HPQ will be needed to be watched tomorrow going into the close.
ABX - ABX 20 puts are $0.74 in the money and unless we get a bounce in GOLD prices tomorrow we will
probably have to close out the ABX 20 put before the close tomorrow.
Watch ABC closely tomorrow.
CHK and BBRY - the CHK 20 call is only $0.11 out of the money and the BBRY 15 call is $0.31 out of the money.
both of these positions will need to be watched and if either or both end up in the money tomorrow, will
have to be closed out if they look to close in the money at the close.
Watch carefully tomorrow.
ABX calls, CLF calls, JNPR calls as well as the BBRY, CMA and HPQ puts should expire worthless unless we see some
unforeseeable wild swing in their underlying stock price.
BIDU looks to be the only issue that we must absolutely have to deal with with
That is the BIDU 90/92.5 call spread.
The bottom line is this: If BIDU closes above 90 we will have to close out the short MAY 90 call, unless BIDU gaps higher than $92.50 at which time if it looks to close higher than $92.50 we would have to close out the BIDU 90/92.50 call spread for a NET DEBIT.
Hopefully, if we have to close out the BIDU call position tomorrow it will be only closing the BIDU 90 call position.
There is also a small chance that if BIDU drops several points or more tomorrow ( no real reason to believe that that will happen )
but if this were to happen, we might need to close out the BIDU 90 put instead of the BIDU 90 call as we have an iron butterfly on out BIDU position.
Either way, we will have to close out one side of the BIDU iron butterfly, depending if BIDU is over or under 90 at the close tomorrow.
SAP iron condor - SAP is trading between out short SAP MAY 80 put and out SAP MAY 82.5 call.
If SAP closes between $90 and $82.5 we will need to do nothing with either the SAP call or put position.
However, if SAP closes below 80, we will have to close out the short MAY 80 put position or conversely,
if SAP closes above $82.50, we will have to close out the SAP $82.50 call.
We need to keep an eye on the range that SAP trades tomorrow.
AGU SWI INTU call spreads should all expire worthless tomorrow.
Additionally, VMW & BIDU puts should also expire ( the BIDU MAY 90 put position will expire if the BIDU MAY 90 short call needs to be closed out.) BIDU can't close both over and under 90 at the close tomorrow,
we just need to see how much we need to close out which side for.
As usual, if for any reason any of these issues look to close in the money before the close tomorrow, if they
are not closed out and are even just $0.01 in the money they will be assigned, meaning you could have stock called
away the you do not want and probably do not have.
The same is true on the put positions we have open, if any of them should close in the money and
you do not close the short puts, you will be assigned stock that you probably do not want.
We will be adding several more position for the June expiration in both portfolios this weekend and following
the MCM June portfolio positions in the watch list starting Friday after tomorrow's May positions go off the board.