[Opening bearish credit spread on Ebay (EBAY)/Buying Oct 100 calls (XBAJT) and selling Oct 95 calls (XBAJS)/Spread order $1.25 credit for the day]
Dear Member,
EBAY has been unable to hold above resistance at $92.50 and gapped down on the open this morning. I am opening a bearish credit spread by simultaneously buying the Oct 100 calls (XBJAT) as my protective leg and selling the Oct 95 calls (XBAJS). I have a limit order for a credit of $1.25 for the day. If filled and if I am able to hold the position to expiration without adjusting, I will have a 33% return for the month before commissions. If I am filled and the stock closes above resistance at $92.50, I will adjust the position.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
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