It’s options expiration today and we have several options that expire today. We also want to write a few more options.

GE

We sold the GE September $31 calls and they will expire worthless; so we will keep the $38 premium we collected and will use it to reduce our cost basis. It will be updated in our monthly newsletter.

The stock is around $27.18, below where we bought it; so let’s sell a put to buy at potentially lower prices.

We will sell the $23 Oct. put, symbol GEWVW, at the market. The option is selling for about $1.05.

If we get exercised our cost basis will be about $21.95. If we don’t get exercised we will keep the $105 premium that we will use to also reduce our cost basis.

Kimberly Clark (KMB)

We sold the KMB Sept. call $65, symbol KMBIM.

We are going to roll up the option to the next month.

Buy to close the KMB Sept. call $65, symbol KMBIM, and simultaneously sell to open the KMBJM at the market.

KMG is around $65.68. The KMBIM is around $.70 and KMBJM is around $2.50. We will net about $1.80 that will be used to lower our cost basis.

Chevron Corp. (CVX)

We sold the Sept. $90 call, symbol CVXIR for $1.05, and it will expire worthless.

We will use the premiums to reduce the cost of our CVX position.

We also sold short the Sept. $80 put, CVXUR, for $1.55. It will also expire worthless and we will use the premium to reduce our cost basis.