[Opening calendar spread on Nanometrics (NANO)/Simultaneously Buying June 12.50 calls (QNKFV) and Selling Feb 15 calls (QNKBC)/Limit $2.40 debit]
Dear Member,
Nanometrics, Inc. (NANO) has been consolidating above support (about $13) and is currently trading at $13.45. I am opening a calendar spread, buying the June 12.50 calls (QNKFV) 2.60 x 2.85 and selling the Feb 15 calls (QNKBC) .45 x .65 for a net debit of $2.40. This is a diagonalized calendar spread that has a number of potential ways to profit. First, it should profit overall by February expiration if the stock is above $13.57. It may also provide the opportunity to sell calls again in March, April,May, and possibly even June. If the stock moves up as it appears it may, it provides an opportunity to profit directionally on the longer term options (JUNE) as well. I plan to adjust the spread if the stock closes below support.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft for CutLoss, Inc
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