[Selling LEAPS Calls Against LEAPS Position on Micron (MU)/Selling to Open Jan '07 15 Calls (VGYAC)/Day Order/Limit $1.60]
Dear Member,
I am placing an order to sell the Jan '07 15 calls (VGYAC) on Micron (MU) for a limit of $1.60. If filled, this will bring cash into my account immediately. The position is covered since I own the Jan '07 $10 calls (VGYAC).
Since I already own the Jan '07 10 calls, my risk will be reduced in that position as a result of the cash received by selling the Jan '07 15's. If filled, this play will assure a profit if I am "called out" or if the stock is above $15 at expiration.
The long position I hold in the Jan '07 10's is the leg that remains from an initial straddle. I exited the put leg of the straddle for a profit back in March. I would like to make a profit on both legs, and today's trade is an effort to lock in that profit on the call side.
DISCLOSURE: At the time of publication, I own the Jan '07 10 calls on Micron (MU).
Sincerely,
Bill Kraft for
CutLoss, Inc.
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