Friday Trade Management

• stevenplace
• December 18th, 2009

Here’s the list of adjustments to plays if you haven’t closed out already:

AAPL

Put verticals expire worthless, no need to adjust.

FAZ

Put sales expire worthless, no need to adjust.

GLD

Iron condors expire worthless, no need to adjust.

GNK

We have Dec 24 puts sold. If we hold it to expiration, we will get assigned 200 shares of GNK at $24/share. The current price is 22.80 so we would be at a loss of (24-22.8) 240 for the position– but when we add in the premium we received, we will be at a gain of $70.

I am going to get assigned common– but if you want the characteristics of a put sale, I would suggest you buy back these contracts at 1.25 – 1.30, and sell the Jan 22.5 Puts for 1.40. This will effectively reduce your basis further. I will be doing something similar with covered calls on Monday.

OIH

Iron condors expire worthless, no need to adjust.

RUT

Put vertical sales expire worthless, no need to adjust– we ended with a loss on the overall trade from the call side of our iron condor.

TRA

If you haven’t already, I would recommend closing out the position for a full profit. The contracts are now ITM so you may have issues with getting a fill– be patient and work your order in.

VLO

Bull call spread expired worthless, no need to adjust.

WFC

As the front month of our calendar has expired worthless, we are effectively long Jan puts on WFC. We are getting a gap fill on the name as we speak, and if 26 support holds, then there is no reason to remain in the position. So if we are not below 26 by EOD, I would recommend to close out the position.

XRT

This is a tricky one as we are picking up some volatility, and there’s a ton of gamma exposure from the 35 calls we have sold. I would go ahead and make the call to buy back the Dec 35 Calls for .17 – if the market weakens further you can let it expire worthless, but just remember we are really close to that short side.

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