MCM SEPTEMBER 2012 PORTFOLIO ACTION.
As we go into the last week of the September expiration we have several
issues that we will need to deal with unless we experience an unusual market reversal
WTW Sept 50/52.50 call spread.
We are looking to close the spread for a NET DEBIT of $2.20
(The spread is $1.90 - $2.50 ( $2.50 is max loss between the spread)
As usual, let's look to initially try and close the spread between
the BID/ASK and work back toward the maximum if we can't get a fill.)
INFA Sept 35/37.5 call spread.
We are looking to close the spread for a NET DEBIT of $2.15 ( The spread is $1.90 - $2.15 ( $2.50 is max loss between the spread )
As usual with all of our closing positions, let's look to initially try and close the spread between the BID/ASK and work back toward the maximum if we can't get a fill.)
We will also need to be watchingVECO, ADM and FB as they are all either at the short strike price or less than $1.00 in the money.
CLF, APOL and potentially MCP, are knocking at the door after Friday's close and need to be watched and potentially acted on as well.
SBUX, WLT, SODA along with any of the put side of our iron condors are okay at this time.
CMG 315/320 Call, as mentioned in Friday's watch list will need to be
disposed of for probably the Maximum debit of $5.00.
We could probably get the close at NET DEBIT $5.00 if we keep the order open, however I am always concerned about an early assignment, if it takes a day or two to close our the CMG call spread.
Of course if that were to happen you could always call away your CMG September 320 call and delivery the stock at $320 which would be $315 - $320 or NET DEBIT of $5.00 and commissions.
However, I would rather not have you do that unless you have that much discretionary cash sitting around in your account.
Brokerage firms don't care for it to much if you don't have the cash and get assigned.
We are looking to close the CMG September 315.320 call spread
for a NET DEBIT $5.00 ASAP.
POSITION TO WATCH:
VNO September 85/90 call spreadwill need to be watched as it is $0.12 in the money against our short September 85 call.
Let's keep an eye on it if the stock should test the $85.75 area.
The other remaining positions AAPL, COST, LULU, NFLX, RGLD, AMGN and the MNST and WFM (iron condors) seem to be okay for now.
October always seems to be a "Caution" month when dealing with the stock market, but than again wasn't September.
This all goes to show you there are no guarantees what has worked or performed in the past will follow through in the future.
So we QE3 and the FED's lower interest rate policies, I am looking at ths market with believe it has some level of support, however I still want to be cautious and respect past experiences with October.
As for after the election, we can deal with that later.
Before the onslaught of QE3, I thought it might have been interesting to see what the direction of the stock market had been over during a presidential election year.
You are free to draw your own conclusions about the past. Incumbent re-election, two new candidates, republican vs. Democrat, recession vs normal economic environment, war vs peace time.
There are a lot of variables that you can apply, but here is a condensed version of the past.
Also remember, past performances in no way guarantee future results.