Here is an update on how each of the positions in our MCM September portfolio look.
It looked so much clearer this time last week, but that was then, this is now.
The good news is that even after this bullish run up, nearly 7% in 7 days. NONE
of our positions are in the money.
Now for the bad news: GRMN and SHLD are the two positions that currently are
not showing a gain at the close of 9-13-10.
SHLD, for the reason it is more volatile and eventhough it is still 2 points out
of the money. Its SHLD Sept 70 premium is the largest short call we have at risk. ( $0.60 )
GRMN, on the other hand, is only $0.20 out of the money, but its premium is ($0.40)
In addition, there is reason to watch both DOW, ATI, PCL , AIG and CMA which are between $0.75
and $1.10 out of the money, but less volatile, still leaves me with some concern.
This market seems to find its way back from whatever adversity gets in its way.
My concern is SHLD and GRMN, so it might not be a bad idea to put a stop on the option or stock
at a price you feel comfortable of having to close out with a very minor loss and maybe lower your
STOP on SHLD.
Both of these positions still have a chance to expire worthless, as we only have 4 trading days
and we have not seen a down day of any impact lately. I might even say that this market is overbought.
DOW, ATI, PCL, AIG, CMA may be close to the strike, but would need another day like today
to make them a threat before Friday.
So in conclusion, note the current positions above and monitor SHLD and GRMN and use
whatever protective measure you would like with either or both of them you deem necessary, if you
deem it necessary.
Even if we lose this two with protection close to the strike, we could still have a profitable month.
Remember: October positions begin being followed this Friday after the September cycle ends.