[Creating Spread on Technology ETF (XLK)/Selling to Open Jan '07 22 Calls (VQPAV)/Day Order/Limit $1.40]
Dear Member:
The Technology EFT (XLK)has dropped both below the trend line and below the 50 day moving average on pretty strong volume so it may be in for a little slide. I already own the Jan '08 15 calls and the stock is now trading around 21.80. I am placing an order to sell the Jan '07 22 calls (VQPAV) at a limit of $1.40 for the day. If filled, this will reduce risk in the position, bring in some income and assure a profit if called out without further adjustment.
DISCLOSURE: At the time of publication, I own the Jan '08 15 calls on XLK.
Sincerely,
Bill Kraft
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