The Volatility Trader
105 W. Monument Street
Baltimore, MD 21201
Friday, January 19, 2007
Email – #245
Our Options Expiration Day Plan
Dear Volatility Trader Subscriber,
Today is January options expiration day. We need to close our positions in Mattel (NYSE: MAT), Vornado Realty Trust (NYSE: VNO) and Southern Copper Company (NYSE: PCU). Here’s the plan…
The Dow Jones Industrial Average is currently negative, and given yesterday’s significant sell off in the Nasdaq, there could be more downside to come this afternoon. We will try to hold these positions for a few more hours.
Vornado Realty Trust : If shares trade above $121, immediately close the position to hang onto gains.
Mattel: If shares trade above $23.50, please exit the put.
Southern Copper Company : If shares move above $55.25, close your bear spread.
You can enter these instructions as “stop orders” with your broker or trading service, so you don’t have to stay glued to your screen all day. The reason we are doing this is to preserve premium, should the markets rally later in the afternoon.
However, the major indexes could easily weaken as the day transpires, so we don’t want to close these positions just yet.
I’ll send another email today at around 2:30 PM, with further guidance, should our positions not be stopped out beforehand.
Exit is everything,
Mark Whistler
