ACTION DISPOSITION FOR TOMORROW's MARCH 2013 EXPIRATION.
Portfolio #1: ACTIONS:
We are going to have to deal with the following issues:
LEN -the $40 short call will have to be closed out tomorrow unless
LEN looks to close below $40 tomorrow. The stock is currently trading at $41.94 so more than likely will will probably have to close out our short $40 call tomorrow before the close Friday.
ANF - The March $49.70 is currently $0.70 in the money and more than likely we will have to deal with this issue tomorrow as well.
We are looking to close out this position tomorrow if the stock looks to close
above $49 near the close on Friday.
However, if the stock should take a downturn tomorrow and drops more than $0.70 the ANF March $49 would have a chance to expire worthless, however currently it looks like we will have to act before the close.
BBRY - We have an iron condor on our March $15 call strike and are also short on
We need BBRY to close under $15 and above $14.50 tomorrow for both sides of the spread to expire worthless. If BBRY looks to close above $15 tomorrow we will have to close out the call side or If BBRY looks to close below $14.50 at the close we will have to close out the put side.
Either way, if we have to close out BBRY on either side, the other side will expire
We are going to look to close any and all of the above issues tomorrow
as they look to more than likely close in the money tomorrow.
IIVI & STZ are two (2) additional issues that we need to watch that
are slightly out of the money.
IIVI - seems to have very little volatility and should be the lesser of the two issues that might go into the money. IIVI is currently trading at $17.46 and is $0.04 out of the money.
STZ - Has been fairly calm the last week, but this is expiration Friday and we are only $0.29 out of the money. This position also has 30 contracts that we need to be very aware of.
We are also have 10 STZ March $42.50/$40 put spread as well.
Hopefully we can have STZ to close under $45 tomorrow at the close so we
can avoid any potential action.
Remember, if STZ looks to close in the money above $45, we will need to close it before the close of market hours on Friday.
JCP, WTW, RBVD, FB, YZC, FIO call spreads are over $1 - $6.00 out of the money and should expire worthless, with any luck.
VPRT and STZ put spreads should also expire worthless as they are $5.17 and $2.21 dollars out of the money respectively.
We will definitely need to close out several issues tomorrow before the close.
We will need to watch all the following issues tomorrow and will definitely have to act to close these positions tomorrow.
SWI (calls) and YUM (calls), are both well over $2 - $3 in the money.
So we will be closing them tomorrow before the close for sure.
APA - We have an iron butterfly on APA and we will have to close one
of the two sides tomorrow, depending on which one is in the money near the close.
Of course if APA is trading near $95 with an hour or so to go you might choose bot close out both sides of the $95 butterfly for hopefully $0.5 = $0.15 NET DEBIT.
Anyway, we need to act on one of the sides, As of the close today APA was at $75.48. $0.48 in the money on the call side.
So we will deal with that one tomorrow one way or the other, they close to
the $95 strike the better.
We will also need to watch and probably also close out the DO 69.25 March calls and ( more of a concern ) the VMW March $85 calls.(Last three day volatility and move).
My concern for VMW is this stock has added over $11 in the last 2 days and now sets $0.10 in the money going into tomorrow's expiration.
The current volatility concerns me. I hope we get a flat or down opening on this stock and if it opens for less than $85 tomorrow I would put in a limit order to close this option position, if the stock trades at $35 or more during the day.
My greater concern is if the stock gaps open tomorrow. ( The stock has closed over $8 on Wednesday and $3 plus on Thursday. If should be due for a breather, but we all know nothing is written in stock when dealing the the stock market, as this issue looked on Monday as almost a guarantee expired option. What a difference the last three days have made.
Watch VMW carefully tomorrow and be prepared to act on VMW if necessary before the close.
LULU, HUM and LVS are on the watch list but hopefully have a very good chance to expire worthless as they are $2.03, $0.77 and $1.68 out of the money respectively.
The remaining issues: RGLD(calls) , AMGN (puts), YUM (puts) should expire worthless tomorrow.
CAVEAT: Just remember if any position looks to close in the money tomorrow
please be sure to close it out before the close tomorrow, even if it looks to close even $0.01 in the money.
If you do not you will be exercised or assigned and have stock either put to you or in most cases this month have stock called away that you probably do not own.
If anything unusual develops you will be emailed tomorrow with any change in action that may be needed.
EXTRA's for MCM APRIL expiration and going forward.
APRIL expiration will include some SUPPLEMENTAL RECOMMENDATIONS for those
who would like to remain bullish and for those contrary, who may are looking for a correction, there will be additional plays for you to choose from
Whenever there is a new high or low, opinions are very diverse.
Hence, in APRIL, I will be issuing some put and call credit spreads as
SUPPLEMENT trades that you may or may not choose to follow, these will be your
own choice to follow of not.
Of course, we will still be making the regular recommendations daily as usual, but fewer but more contracts.
The SUPPLEMENTAL RECOMMENDATIONS, just give subscribers the opportunity to add additional plays if they desire to ,with the proviso, they follow them and set their own exit and entry prices.
The MCM April Watch list and Portfolio begins posting tomorrow after the March options go off the board on the close.>