[Weekend Summary]
Dear Member:
I made a couple of move this week. I closed my spread on Micron (MU) for an ultimate net gain (after adjustments over time before commissions of $1.65 on an initial investment of $3.50. That represents a gain of 45% in one year. This trade was longer than most for me, but I stayed and made several adjustments in a successful effort to avoid a loss and capture a reasonable gain.
BBH was dropping and I own the Jan '07 200 LEAPS calls so I sold the Jan '07 220 calls for $10.10 a share. That trade brought in some nice income and reduced the risk in the long position. There is now some nice profit in the 220's and I expect that I will eventually buy back those calls to capture the profit in that leg.
The situation is similar for EBAY where I had sold the Jan '07 50 calls against my Jan '07 40 calls. It looks like EBAY may be ready to turn back up and when it does, I expect to close the short leg.
The straddles on Cardinal Health (CAH), Burlington Resources (BR) and Morgan Stanley (MS) are just chugging along at the moment.
The major indices are giving some indication that the retracements may have been completed. I am a bit ambivalent, but think that a bullish movement may resume. I am wary, however, since February is often a down month.
I hope you enjoy your weekend.
Bill
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