[Closing Short Call Position on SPY/Buying to Close Jan 129 Calls (SPYAY)/Limit $0.10]
Dear Member:
I own the Jan '07 120 LEAPS Calls on SPY and created a diagonalized calendar spread by selling this Jan 129 Calls (SPYAY) for $0.40. I now want to close that short position to avoid any chance of being called out so I am placing an order to buy to close those Jan 129 calls (SPYAY) for a limit of $0.10. That would generate a 30 cent profit before commissions or a 2.2% return in a month. It also will have reduced my risk in the underlying LEAPS position by 30 cents.
DISCLOSURE: At the time of publication, I own the Jan '07 120 calls and am short the Jan 129 calls on SPY.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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