Wednesday, August 6, 2008

Review of Positions for Next Week

Starting to evaluate possibilities for next weeks expiration or exercise of calls. Do I want to let calls be exercised or to buy some of them back. Current almost half of the stocks in Account 2 could be called: CVS, GE, JPM, KO, RIMM, SPLS, UNH, WM. A couple of these of just out at current time. A couple of others are further out but could be in by next Friday. The current market is like a Yo-Yo and not very easy to predict if stocks will be called or not. I usually let the stocks be called and then repurchase. Trading in a Market to Market account all gains are short term so the only advantage of a roll out is savings of exercised commission which must be traded off against cost of buy back of option and repurchase of stock.

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