First, let's get the issues out of the way that should not create any problems for us tomorrow ( at least as they appear today )
The following positions should all expire worthless and should require no action tomorrow.
Those positions are listed below:
Put credit spreads on:
call credit spreads on:
In addition :
BOTH sides of our iron condor on ANF (calls) and ANF (puts) should expire worthless.
Now, the issues we will have to deal with tomorrow.
Murphy's Law came to visit on Thursday and caused havoc on several of our positions in
the last 24 hours.
Those positions are as follows:
The call side:
DB ( calls ) - DB jumped almost $3.00 today and took our $39 close of yesterday, which was $1.00 out of
the money to being in the money by almost $2.00. We will probably have to close this position before the close tomorrow, as it is in the money against our Jan $40 short call.
TM (calls) - TM also jumped today nearly $1.50 and our $67.50 call is now almost $1.75 in the money.
LNKD (calls) - LNKD, the biggest surprise, was going smoothly along until Tursday morning and then jumped up nearly $4.00 to put our LNKD 72.5 calls almost $2.00 in the money. We will, more than likely, have to close this position before the close tomorrow as well.
WHR (calls) WHR - also served us with a "unpleasant" surprise as WHR jumped up today over $1.60 to put our WHR Jan 55 call slightly over $0.50 in the money. Unless we get a small pull back tomorrow will have to close WHR out before the close on Friday as well.
The Put side:
UA (puts) -UA was downgraded by Jeffries on Tuesday and never got back any footing from the bargin hunter's and thus we find our UA Jan 75 put under water
by nearly $2.00 going into tomorrow. We will have to deal with the cllosing of this position as well.
GG( puts) - GG was holding on fairly well, but unlike the other GOLD stocks and miners, seemed to be less active, however it still may have to
be closed out as GG is trading under our $45 short put strike and if that is the situation tomorrow we might have to close that position out as well, but at least
not for any significant loss.
As always, things usually thing on expiration Friday, but I am working on the assumption that the above positions,( most if not all ) will have to be dealt with
tomorrow before the close.
In addition, remember that ANY position ( even the ones that look safe ) , could end up in the money if "Murphy's Law" should make a "surprise visit". Always remember
that if any position is even $0.01 in the money against you, that position will be either assigned to you if you are short the put, or called away, from you if you are short the call, which is not the a situation you what to be in unless you want to own the underlying stock and don't mind buying if it is put to you, or having the stock called away if you own it.
However, if you do not wish to have stock assigned or exercised you have to close out all short positions that could close in the money.
If you are working or will be away from the market , you can use a MARKET ON CLOSE ORDER to be sure you are covered.
In addition, if we get a favorable move on any of our positions that are in
trouble ( as noted above ) do not hesitate to close them out, especially if
a put short position gaps up, or a short call position stock price should gap down. Otherwise you can pick a time later in the session tomorrow to close out
those positions listed above or you can close out those positions with a MARKET ON CLOSE order at the end of the day or when your BD notifies you you have to close them.. But remember the price to close could be higher if the stock continues to go against you
Friday we will begin the watch list for the February positions and will be adding several positions over the weekend.
We might be adding several tonight as well, but more than likely not until the weekend.