[Closing short leg on EBAY credit spread/Buy to close Oct 95 calls (XBAJS)/Day order limit $0.95]
Dear Member,
One of those great opportunties has arisen again where I can capture a profit in a position and still own part of the position for free with no risk of losing the profit I already have captured. Originally, I entered a bear spread on EBAY, selling the Oct 95 calls (XBAJS) for $2.05 and buying the Oct 100 calls (XBAJT) for $0.80. I am now entering an order to but the Oct 95 calls (XBAJS) to close that leg for $0.95. If filled, I will have a profit of $1.10 on the 95 call leg alone and overall a profit of $0.30 if I never do anything with this position again. BUT, I still own the 100 calls and I own them for free!!! If EBAY turns back up those 100's have theoretically unlimited profit potential and I have no risk of losing the net $0.30 I have already captured. Hope I get filled.
DISCLOSURE: At the time of publication, I am short the Oct 95 calls and long the 100 calls on EBAY.
Sincerely,
Bill Kraft
CutLoss, Inc.
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