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FINAL MCM SEPTEMBER 2013 Disposition of open positions for Friday's expiration.

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Portfolio #1:

Positions that will need to be addressed and potentially closed tomorrow.

JCP(puts), UAL (calls), PHM (calls), DHI (calls).

JCP(puts) -The JCP(put) spread is part of an iron butterlfy on the September 20 strike price.

The JCP September 14 put is $0.86 in the money(put) with the JCP September 14 call the same distance out of the money going into tomorrow's September expiration.

One of the sides will have to be closed out.

That side looks to be the JCP September 14 put.

If that is the case we will need to close out the JCP September put either at the opening or before the close of the market tomorrow.

If you close the JCP September 14 put tomorrow, near the end of the day, than the JCP September 14 put will expire worthless.

UAL - The UAL September 33 call - is $0.79 in the money and will most likely have to be closed out before the close of tomorrow's action, unless UAL should look to close below $33 tomorrow, which is probably unlikely.

So we need to follow UAL and either close it out early , if we get a down opening or you can hold to see if the issue could close below $33 and have the UAL September 33 call expire worthless.

The odds are against that, so be prepared to have to close out the UAL 33 call tomorrow if it looks to close above $33.

PHM - The PHM September 17 call is $0.62 and will also probably need to be closed before the close of market action tomorrow.

Be sure to follow PHM and if it looks to close above $17 you will need to close the short PHM Septebmer $17 call out before the close.

Of course, if you get a down opening tomorrow, you may choose not to wait until later, but you might consider to closing the position out earlier in the day.

DHI - The DHI September 21 call is $0.01 in the money.

You can close this one out tomorrow early or try and wait it out to see if it looks to close below $21, where it would expire worthless.

This is one of those that could go either way tomorrow.

The key here is that you do not want it to run early in the session and have to close it out for a larger loss than it looks today.

However, a down day, ever so slight, could move the stock out of the money, as it is currently on $0.01 in the money.

The bottom line here, is you can close out early for a few cents, or watch the action for the day ( especially should we have any kind of a down day.

This remember if DHI looks to close above $21 you have to close out the call position.

Positions that are out of the money, but on the watch list that you MIGHT have to deal with tomorrow.

POT- The POT September 33 call is on the watch list, but is still $0.92 out of the money.

Once again, with just a normal day tomorrow there is a very good chance that the POT 33 call for September should expire tomorrow.

Positions that are out of the money.

M(calls), T(calls), ABT(calls), APOL(puts), JCP(calls) - are all over $1.00 plus out of the money and with any type of normal day or down day, they all should expire worthless tomorrow.
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Portfolio #2:

Positions that will need to be addressed and potentially closed tomorrow.

YUM(calls), NSC (calls), AXP (calls).

YUM -The YUM September $72.50 call is $0.23 in the money and if we don't a little help tomorrow on the down side, we will probably have to close it out before the close.

The biggest fear is a gap opening to the up side the could force us to pay a lot more to close out the short call position.

NSC -The NSC September $77.50 call is $0.67 in the money and we face the same thing with this position as with YUM.

If we get a down opening we might be able to close out this position for a smaller loss.

However we can still hold the position to see if there is any downside tomorrow that might even close the stock below $77.50 ( if would take $0.67 or more to do that, a chance, but more likely we will have to close this position out tomorrow.

if we get an opening to the downside, you might want to pick a price to place a STOP order, if you feel the stock could open down early and run later, This way you could limit your loss or you could wait until near the close and decide to close it out at that time if it looks to close in the money.

AXP -The AXP September $77.50 call is only $0.07 in the money.

you definitely, want to close this one out for a few pennies, if we open down and not run the risk of AXP running later in the session and force you to cover to close later in the day at a higher price.

Of course, if we get a flat of down opening and the stock drifts down for most of the session, you might have a situation where the AXP September $77.5 call could close under $77.5 and you would need do nothing.

However, it still is a few cents in the money ($0.07 ) so on a flat opening it might be a good idea to put in a stop slightly above the current price, (similar to YUM ),as to avoid a potential larger loss if AXP should run later in the day.

Positions that are out of the money, but on the watch list that you MIGHT have to deal with tomorrow.

CREE(calls), CVS (calls), PRU(puts)
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CREE -The CREE September $62.50 call is $1.40 out of the money and with any kind of normal option expiration activity, should expire worthless.

However, because it is still on the watch list, keep an eye on it.

PRU -The PRU September $75 put is $1.10 out of the money, but with the stocks drop of $1.55 today, we need to watch to be sure that a similar drop is not had tomorrow before the close of we will have to act before the close.

CVS -The CVS September $60 call is out of the money, but only by $0.20 and really needs to be watched tomorrow as it took a $0.20 move to take it out of the money today, hence a $0.20 move to the upside is not out of the realm of possibility.

CVS of all the stocks on the WATCH list in Portfolio #2 , going into tomorrow, this is the one to watch.

If we get a flat or down opening this might be a good one to put a stop slightly above the opening option print tomorrow.

All of the remaining open call spread positions in Portfolio #2 (GMCR (iron condor), PRU (calls), BBBY(calls), KMP(calls) and the YUM (puts) )are all anywhere from 1.31 - 9.32 points out of the money and should all expire worthless tomorrow, unless an unforeseeable event should transpire with any of them.

That would be called "Murphy's Law".

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 puts, you could have stock put to you that you probably do not want and if you are short calls you could have stock called away from you that you probably do not have.

We will be adding several more positions for the October expiration in both portfolios this weekend and we will begin adding a few positions in the experimental Portfolio #3, which will consists of several iron condors ( positions with both call and put spreads on the same side.
We will begin following the MCM October portfolio positions in the watch list starting Friday after tomorrow's September option positions go off the board.

The MCM October 2013 watch list and portfolio will begin posting after tomorrow's close.

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MCM OCTOBER 2013 RECOMMENDATIONS.

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We are recommending the following credit spreads to the October 2013 expiration cycle.

We are recommending a put spread on YELP to complete and iron condor when combined with our current call spread on YELP.

We are recommending the following specific put credit spread in our Portfolio #2

Put Credit spreads = Bullish Put spread.