Business

There looks to be a lot of November Expiration related "pinning" going on as we head into Friday's close.

Many big equities are moving right towards strike price pin levels, including Apple (AAPL) at 200, Google (GOOG) at 570, Research in Motion (RIMM) at 60, Disney (DIS) at 30, AIG (AIG) at 35, Fifth Third Bank (FITB) at 10, Netflix (NFLX) at 60, Amazon (AMZN) at 130, Costco (COST) at 60, Dish (DISH) at 20, Monsanto (MON) at 80, H-P (HPQ) at 50, Coca Cola (KO) at 57.5, among others.

In a previous OptionMaestro.com post, I outlined 30 stocks which I wouldn't mind going long at these levels. I wrote about getting long the stocks by using the buy-write option strategy. This is an updated post to that one, adjusting the strikes and prices accordingly for options expiration today. It is very important to write the shares out as early as possible as volatility rushes into the market in the morning, and not wait for it to start decreasing rapidly in the afternoon. It's not too late to get premium out of many of these stocks, and writing them for just a day decreases risk greatly. I will look to be purchasing some of the stocks mentioned below during pre-market or near market open to write out within an hour of the opening bell. As I've stated, I don't mind holding any of these stocks long which is why I'll be using this strategy today. If I get called out I won't mind because I'll still make money. Below is the list of stocks, the potential return if exercised, and downside protection if they do not get exercised. To learn more about the buy/write option strategy, risks, pricing, calculations, other strategies, and options in general, click here.

Note that higher beta securities return higher percentages due to their levels of implied volatility, and because they are riskier.