[Weekend Summary]
Dear Member:
This week I bought back (bought to close) the Apr 80 puts on Diamond Offshore (DO) for 55 cents. Originally, I had sold the 80 puts and bought the 75 puts for a credit of $1.20. By buying back the short leg for 55 cents, I made the whole trade profitable. That is, I kept 65 cents of the original credit and now I still own the 75 puts. If the stock drops, I can make more money; if not, I still keep my profit. Pretty cool, huh.
I own the Jan '08 10 calls on Micron (MU). When it backed off a bit, it gave me the chance to create a spread by selling the Jan '08 17.50 calls for $1.95 a share. That brought in some cash and reduced my risk in the original position.
I still hold the Jun 70 calls on Cardinal Health (CAH)and the stock moved up just a tiny fraction for the week. Same kind of thing for the Technology ETF (XLK). At least they are going in the right direction.
The call side of my July 60 straddle on Morgan Stanley (MS) benefitted by a $1.35 rise in the stock. Sirius Satellite Radio (SIRI)has continued to do ok, but is currently at what looks like a minor resistance.
The iron condor on Altria (MO) is fine for now, as is the 120/140 bullish call spread on SPY.
Golf at Pebble Beach for me this weekend and I'm excited. Hope you have a great weekend, too.
Bill
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