[Buying to close short leg on EOG bullish put spread/Buying to close May 45 Puts (EOGQI)/Limit $0.55]
Dear Member,
With oil prices decreasing, I have the chance to make my overall spread profitable and still retain the May 40 Put leg of the original spread thus giving me a chance to make an even greater profit. I am placing an order to buy to close the short leg -- the May 45 Puts (EOGQI) for 55 cents. I opened the spread for a credit of $1.10 so I am giving back half of that original credit which means I will make a 55 cent a share profit before commissions and still own the May 40 Puts. If the stock drops, the May 40's will gain in value and I will be able to increase my profits. In any event, I will own them for free.
Sincerely,
Bill Kraft for
CutLoss, Inc.
DISCLOSURE: At the time of publication, I am short the May 45 Puts on EOG and I am long the May 40 Puts.
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