Friday Option Expiration

As if this market needed more to increase volatility, Friday the 18th is option expiration Friday.  It’s not even a normal expiration day, Leaps expire tomorrow too.  It should be exciting.

MONSANTO (MON) which has fallen 29 points this week has the highest number of options at the 95 strike for puts and calls.  I wouldn’t be surprised to see it hit 95 tomorrow by close.  It needs to stay above that since I have a January 95 put I thought was safe just three days ago.  I could have some nice realized gains tomorrow with other options expiring worthless, but after today, there’s no telling how the day will turn. 

RTN 62.50, NYX 85, GME 50, MON 95 are my closest puts to their strikes or in the case of NYX just deep in the money already.  If the other three can hold out I’ll have a slight reason to smile.  I’m considering taking the assignment from MON though.  The premiums are MASSIVE for calls if I write them, even at the money.  I think it’ll flatten soon and head back north.  Others must agree or the premiums wouldn’t be as big as they are.  GME and RTN are both slightly in the money, but I still have a profit on them.  I’d prefer for them to expire worthless, but will buy them back if they don’t rebound.  At least that’s my plan on Thursday night.