[Buying LEAPS Calls on Spyder Tech Sector (XLK)/Buying Jan '08 15 Calls (WQDAO)/Day Order/Limit $8.30]
Dear Member:
The Exchange Traded Fund (ETF for Short) on the Tech Sector (XLK) has broken above a resistance. I am placing an order to buy some deep in the money LEAPS calls, the Jan '08 15 Calls (WQDAO)at a limit of $8.30. Since this is an ETF and represents a whole sector, I don't expect volatility to be particularly high and this type trade is often a bit longer term than many of my positions. I am buying deep in the money because there is high open interest and the delta is almost .86.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying ETF.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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