[Selling Puts on Altria (MO)/Selling to Close Apr 65 Puts (MOPM)/Day Order/Limit $0.20]
Dear Member:
Altria (MO) now seems to be holding around 70 so I'd like to get some cash out of my Apr 65 Puts (MOPM). I'm placing a day order to sell the MOPM at $0.20 or better. You'll recall that I originally entered 4 positions on MO; I sold the 75 calls, bought the 80 calls, sold the 70 puts and bought the 65 puts all for a credit of $1.75 a share. The goal is always to keep as much as the credit as possible. Last week, I gave back $1.50 of that credit by closing the Apr 70 Put leg, now, I am trying to regain another 20 cents by selling the 65 Puts so that my net credit will be $0.45. I could also now guarantee a profit by buying to close the Apr 75 calls for 20 cents. That would leave me with a net of +25 cents and I would still own the 80 calls that could only add to profit if the stock moves up fairly quickly. I have chosen not to buy back those 75 calls at least for now.
DISCLOSURE: At the time of publication, I own the Apr 65 puts and the Apr 80 calls and am short the Apr 75 calls.
Sincerely,
Bill Kraft
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