DISPOSITION FOR FRIDAYâ€™S DECEMBER 2014 OPEN POSITIONS.>
MCM DECEMBER 2014 PORTFOLIO # 1:
Unless some unforeseen event should happen to the upside of this market tomorrow, all of the open
positions in Portfolio #1 should expire worthless.
Positions that should expire worthless tomorrow are call spreads in: DAL,MS,EA (puts) & X, SWN, GDX (calls) .
These positions above are anywhere from $3.24 - $11.36 out of the money.
MCM DECEMBER 2014 PORTFOLIO # 2:
MRK - MRK December 57.50 puts are over $1.40 out of the money after today's big rally.
This should be the only position we need to watch unless something even more extraordinary happens on Friday.
If MRK continues tomorrow with a close above $57.50 the MRK puts will expire worthless.
If Mrk should retreat to under $57.50 you would need to close out the $57.50 short puts, however if
MRK above $57.50, nothing needs to be done.
Positions that should expire worthless tomorrow that are call spreads are in: IBM, GLD & AAPL.
Positions that should expire worthless tomorrow that are put spreads are in: AXP, DIS, SBUX, YHOO & CVS.
These positions above are anywhere from $2.39 - $17.76 out of the money.
MCM DECEMBER 2014 PORTFOLIO # 3:
We will need to watch and potentially have to close out 1 or more of the following three (3) positions.
Those positions are AA, VZ, and maybe T which are all put positions.
T (Puts) - The T December 33.50 puts will probably need to be watched also.
we have a very tight spread of $33.50/$33.00 so if we look to close tomorrow below $33.50 we will not have to act to close
out the T $33.50 put spread.
However if T looks to close slightly below $33.50 we only have to close the short side, as there will be no
reason to close out our long $33 put side which would expire worthless.
Once again, If T should look to close about $33.50 we need do nothing as the T December $33.50 would expire worthless.
AA (Puts) - The AA DECEMBER 16 calls are $0.22 in the and if AA closes below
$16 the AA Decemvber 16 put would have to be closed out.
Of course if AA should happen to close up tomorrow and above $16 we would need to do nothing as the $16 put would than expire worthless.
AA needs to be watched tomorrow.
Once again, If AA can close about $16 tomorrow, no action will be necessary.
VZ (Puts) - TH VZ December $47.50 is also slightly in the money by $.46 and if
continues to remain in the money near the close on Friday we will need to close out the V December $47.50 put,
However if VZ can rally a few more cents tomorrow $0.46) and close about $47.50, we would need to do nothing as the $47.50
puts would expire worthless.
NOTE: We need to watch T, VZ and AA tomorrow and potentially act on any or all of the three (3).
If you are going to be away from your computer tomorrow you might put in orders for MARKET ON CLOSE.
Additionally, if you do not want to wait to the close and we get a flat to up opening you might want to
close out all or any of these at that time, otherwise you will need to close them during the day if they will
look to close about their short strikes.
Positions that should expire worthless tomorrow that are in call spreads in: JCP & SLV.
Positions that should expire worthless tomorrow that are in put spreads are in: ACHN & KING.
These positions above are anywhere from $1.20 - $5.55 - $ out of the money.
IMPORTANT CAVEAT WARNING:
If any issue should look to close in the money, be sure to close out that position before the close of the market
on Friday, if you do not and that option is even $0.01 in the money, you will be Either have stock called away that
you do not have ( short a call position) or get assigned stock that you may not want (short put position).
The MCM JANUARY 2015 watch list and Portfolio will begin being posted after the close of the market on Friday,
right after the DECEMBER options come off of the board on this expiration Friday.