[Creating Spread with EBAY LEAPS/Selling to Open Jan '07 50 Calls (OYIAJ)/Day Order/Limit $5.00]
Dear Member:
EBAY rose to a resistance level and turned over. Since I own the Jan '07 40 calls (OYIAH) already and am still bullish overall, I am going to create a bullish call spread by selling the Jan '07 50 calls (OYIAJ) at a limit of $5.00. If filled, I will bring in a nice little chunk of change and will reduce my risk in my original position by the $5 I am taking in with this trade. The spread will be long the Jan '07 40 calls and short the Jan '07 50 calls so I can make $10 on the spread less the cost if I don't make any additional adjustments and the stock is over 50 at Jan '07 expiration.
DISCLOSURE: At the time of publication, I own the Jan '07 40 calls on EBAY.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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