[Selling Calls against LEAPS on Micron (MU)/Selling to Open Jan '07 15 Calls (VGYAC)/Day Order/Limit $1.50]
Dear Member,
Micron (MU) is backing off a bit today so I am placing an order to sell the Jan '07 15 LEAPS Calls (VGYAC) $1.50 x$1.60 for a limit of $1.50. That means that I will receive $150 per contract ($1.50 x 100 shares x # of contracts) less commissions. I already own the Jan '07 10 calls so this will be a covered position (in effect, a bull call spread). If filled, the order will bring in some nice income (42.8% return on initial investment) and assures a nice return if held to expiration and the stock is then above $15. In addition, my risk in the position is reduced by the amount of net income realized.
DISCLOSURE: At the time of publication, I am long (own) the Jan '07 10 calls on MU.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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