Master Income Update, Fri Oct 7th

Master Income Update -

Friday, Oct 7th, 2011

Greetings,

Let me fill you in on how I’m getting positioned for next week.

Keeping in mind that the Nasdaq crept up to a C- yesterday (with everything else at an
“E”) – and keeping in mind earnings season too.

For one, I’m dumping my last remaining shares in NFLX.  I had re-adjusted down my
Dec 190 puts, moving them to the Jan $115 puts.   But there were drags in my accounts
on buying power/margin.

When I couldn’t crack it, I went over and looked at NFLX and saw that the margin
requirements, even for portfolio margin, had been doubled!  While I like the stock here
for steady weekly income potential (it got downgraded today…boy was that firm late
to the party!) – it’s just become too much albatross for me personally.

So I bought back my calls I sold yesterday (for next week), sold the stock, and sold
my Jan $115 puts.  I’m out, kaput of all my NFLX (and viola…my buying power took off
like a 2 year old after a scolding!)

Anyway – I’ve moved into 4 (what I call) “money presses” recently, taking advantage of
that time on the calendar for the likes of AAPL, PCLN, NVDA and WYNN – they all have
compelling reasons to be both volatile and move sideways to up as events and things
are in front of all of them!

I’ve repositioned puts on BIDU, going for the March 100 puts, Jan $100 puts and I still
have 20 Dec $125 puts.

The calls I’m writing on this volatile mother for next week are:

10 sold at the $110 call strike
10 sold at the $115 ”  ”
30 sold at the $120 ”  ”

I overwrote on AMZN, selling 10 of the next $225 calls and 10 of the $220 calls.

I have the $225′s expiring in one hour from now – and I’m watching them closely as
AMZN looks very “pinny” here at the $225 strike.

LVS got goosed up there the other day (same with WYNN, who now has weeklies!)

For next week, I’m rolling half at the $41 calls and half at the $42 calls.

I’m rolling my FFIV to the $80 and $82.50 calls.  Talk about another stock that got some
rocket fuel mixed in there with it’s cereal.  Geeez!

I’m overwriting too on JPM, selling next week’s $31 calls and watching to see that this
week’s $31 calls expire worthless…if not…I have to be here by the ready to buy these
back.

That about covers it!  Over and out, –P