DISPOSITION oF REMAINING OPENING POSITIONS.
The following issues will need to be followed and potentially dealt with.
BBY DOW MSI.
BBY - has run up the last three days to finally go into the money today by $0.41 with close at $20.41. This will probably be the position we have to watch and/or potentially deal with most tomorrow.
You can do one of several things.>
1. Close the position on the opening, especially if we get a flat opening.
2. Place a STOP order on the option and slightly above the market and if it is not triggered place a MARKET on CLOSE order to close out the position.
3.Hold the position and close out the BBY 20 call if it looks to close in the money at the close.
CAVEAT: Remember this is the last day to close out the position so if it looks to close
even $0.01 in the money at the close you MUST close the position or you have stock
called away that you probably do not own.
DOW and MSI are a lot less potentially volatile so you might see how they open tomorrow.
If DOW opens close to its $30.05 close of today, you might place a STOP order either above the Ask that you would accept closing if your stop were hit. ( some firms allow you to use the stock price as the trigger to close the option or you might just prefer to place the stop above the actual option itself, that would be your call
You can also just hold unto the option and see how DOW trades and decide to close it if it is in the money near the close of just let it expire if it looks to close below $30. Your choice.
Remember, if you hold the 30 call until the close you will have to close it if it looks to close in the money. Most firms will do it 1 hour before the close or you could just hold it and place MARKET ON CLOSE order if you are not going to be home to assure you do not get stock called away that you probably do not own.
MSI (call spread ). You might want to watch the opening and decide if you want to place a stop on the option or hold it and see if it closes under $48 tomorrow. Remember there is only a 1 pt difference in the strike prices so if something bizarre happens to the upside you have minimal risk.
You can just hold until the close and act accordingly or if you are not going to be at home for the close hold the position and place a MARKET ON CLOSE order before you leave.
CAVEAT: Remember this is the last day to close out the position so if it looks to close even $0.01 in the money at the close you MUST close the position or you have stock called away that you probably do not own.
The following issues are out of the money, but close enough to potentially have to be dealt with.
NFLX, FDS and LULU.
NFLX seems to be the the closest and most volatile of the three. If it opens up flat to slightly up or down you can place a STOP slightly above the price you are willing to be STOPPED out at, or with the right broker you can place the STOP to be triggered on the stock to close the NFLX 65 call.
You can also just hold these positions and decide at what price you want to put on a stop or just close the position.
If you are gong to be away from the computer and wish to hold out hoping NFLX closes lower then the Aug 65 call strike, you may do so but need to PLACE a MARKET ON CLOSE order to be sure the option is closed if it looks to be closing above $65.
if you are going to be at home or have access to a computer you can wait and close anytime during the day.
With NFLX you might want to see how it opens and place a stop either on the AUg 65 call itself or a STOP on a stock price on NFLX stock itself that would trigger the closing of the option. Once again, depending on your broker
dealer's trading platform.
LULU I would watch similarly, but we do have $1.84 points of wiggle room. So you can wait for the opening and place a STOP on the Stock Price or Option price similiar to NFLX.
Once again, if you are not going to be home ad want to hold out but be sure you close the position if it should go into the money near the close you can use your MARKET ON CLOSE order, if you are not going to be near a computer
near the close.
FDS - we are going to hold out and see how it acts tomorrow, and if it looks to close in the money close it out near the end of the day. If FDS does not look to close in money we hopefully hold and have the FDS 95 call
I will email if we need to do anything other unexpectedly.
CAVEAT: Remember this is the last day to close out the positions so if any position looks to close even $0.01 in the money at the close you MUST close the position or you have stock called away that you probably do not own.
If a put position were in the money, you could be put stock that you probably do not want or have the money to pay for.
September positions begin being followed tomorrow after the close and the August expiration goes off the board.