[Buying Back (to close) Feb Calls on SPY/Buy to Close Feb 129 Calls (SPYBY)/Day Order/Limit $0.10]
Dear Member:
You may recall that I sold the Feb 129 calls (SPYBY) on SPY for 80 cents on 1/20/06. I already owned the Jan '07 120 calls so I had created a diagonalized calendar spread when I sold the Feb calls. I am now placing an order to buy back (buy to close) the Feb 129 calls (SPYBY) for 10 cents. Of course, that means I will have made 70 cents a share in 19 days and reduced my risk in the underlying Jan 120 calls by that same amount. The order I am placing is: day order, buy to close the Feb 129 calls (SPYBY), limit $0.10.
DISCLOSURE: At the time of publication, I own the Jan '07 120 calls and am short the Feb 129 calls on SPY.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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