FINAL MCM JULY 2013 Disposition of open positions for Friday's expiration.
MO - We will more than probably have to close out our MO 36/37 call spread tomorrow before the close as
MO is currently trading in the money above $37 at the close today.
We will probably either close out the spread tomorrow for a NET DEBIT of or close out just
the short side if the stock looks to close under $37 and closer to the $36.75 level.
However, more than likely we will close out both sides of the spread.
BBY - We have a iron codnor on BBY with the call side 29/30 and the put side 29/28.
The BBY 29/30 call posses the greater threat and we will have to watch it tomorrow.
If it looks to close under $29 and above $28 no action will be needed tomorrow on BBY, as both sides
of the iron condor would expire worthless.
However, if BBY looks to close above $29 ( we will have to close out the BBY July 29 call.
If BBY looks to below $28 ( the least likely, we will have to close out the BBY July 28 put.
Hence, a close between $28 - $29 would be the optimum so that both the put and the call expire worthless.
TOL - is about $0.70 out of the money and should expire worthless unless we get an unexpected housing
report (none are on the agenda tomorrow ), which might have an impact on TOL.
With that being said, the TOL call spread should more than likely expire tomorrow.
All the other call spread positions: CLF, PBR, NUAN, NEM SHLD, DHI are anywhere from 1 - 7 points out of the
money and should expire worthtless tomorrow.
ANF put spread - the ANF put spread, being nearly 2 points out of the money ) should expire worthless tomorrow
CLX - is currently trading over $86 going into tomorrow's July expiration close, so
unless CLX looks to close below $85 tomorrow ( not a likely scenario ), we will more than likely have to be close out the
short CLX July 85 call tomorrow sometime during the day or definitely before the close tomorrow.
COG - made a surprising jump today and closed $0.15 in the money at the close today.
We will definitely have to watch the COG 72.50 short call going into tomorrow's close.
If COG looks to close above $72.50 at the close, you will need to close out the COG July $72.50 call.
If COG looks to close below $72.50 you need do nothing as the COG july $72.50 would thus expire worthless.
You can either close early for $0.50 - $0.60 or hold on for the day and choose to close sometime during the day or
at the close.
Just a reminder, if COG looks to close above $72.50 ( where is is now ), you need to close before the close o market
However, If it looks to close under $72.50, you can let the COG july $72.50 call expire worthless.
All of the remaining open positions in Portfolio #2 (LULU LLY VMW )are call spreads and are anywhere from 4 - 7
points out of the money and should all expire worthless tomorrow, unless an unforeseeable event should transpire.
EXPIRATION CAVEAT REMINDER:
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, if you have short calls, you could have stock called away that probably you do not own, or with s short put have stock put to you that you do not want.
We are adding a few positions in the MCM August portfolio #2 tomorrow ( see below.)
We may be adding a several more position for the August expiration in both portfolios this weekend as well.
We will be following the MCM August portfolio positions in the watch list starting Friday after tomorrow's July option positions go off the board.
The MCM August watch list and portfolio will begin posting after tomorrow's close.
MCM AUGUST 2013 RECOMMENDATIONS.
We are recommending the following credit spreads to the AUGUST expiration cycle.
We are recommending credit spreads for our Portfolio #2 in
the following issues.
AXP - American Express Company provides charge and credit payment card products and travel-related services to
customers worldwide. The companyâ€™s product portfolio consists of charge and credit card products; expense management
products and services; consumer and business travel services; stored value products, including travelers cheques and other
prepaid products; network services; merchant acquisition and processing, and servicing and settlement, as well as point-
of-sale, marketing, and information products and services for merchants; and fee services comprising fraud prevention
services, and the design of customer loyalty and rewards programs. It also publishes luxury lifestyle magazines under the
Travel + Leisure, Food & Wine, Departures, and Executive Travel brand names; travel, cooking, wine, time management, and
financial books and products; international editions of its titles; digital and mobile content; luxury-marketing events;
and custom print and online programs for clients. The company sells its products and services to consumers, small
businesses, mid-sized companies, and large corporations through direct mail, online applications, in-house and third-party
sales forces, and direct response advertising.
KMP - Kinder Morgan Energy Partners, L.P. operates as a pipeline transportation and energy storage company in
North America. Its Products Pipelines segment delivers gasoline, diesel fuel, jet fuel, and natural gas liquids to various
markets through approximately 8,600 miles of refined petroleum products pipelines; and operates 62 associated product
terminals and petroleum pipeline transmix processing facilities. The companyÂ’s Natural Gas Pipelines segment gathers,
transports, stores, treats, processes, and sells natural gas through approximately 33,000 miles of natural gas
transmission pipelines and gathering lines, as well as natural gas storage, treating, and processing facilities. Its CO2
segment produces, markets, and transports carbon dioxide through approximately 1,500 miles of pipelines to oil fields.
This segment also owns and operates 7 oil fields, and a 450 mile crude oil pipeline system in west Texas. The companyÂ’s
Terminals segment transloads, stores, and delivers bulk, petroleum, petrochemical, and other liquids products through
approximately 113 liquids and bulk terminal facilities; and approximately 35 rail transloading and materials handling
facilities. Its Kinder Morgan Canada segment transports crude oil and refined petroleum products through approximately
2,500 miles of pipelines from Alberta, Canada to marketing terminals and refineries in British Columbia, the state of
Washington, and the Rocky Mountains, as well as in the central regions of the United States. This segment also operates
the Jet Fuel aviation turbine fuel pipeline that serves the Vancouver (Canada) International Airport. Kinder Morgan G.P.,
Inc. serves as the general partner of the company. Kinder Morgan Energy Partners, L.P. was founded in 1992 and is
headquartered in Houston, Texas.
We are recommending the following specific credit spreads.
Call Credit spreads = Bearish call spreads.