trade stock, stock share

[Closing Short Leg of Ryland (RYL) Bear Call Spread/Buying to Close Jun 60 Call (RYLFL)/Day Order/Limit $0.80] Dear Member: Since I entered a credit spread on Ryland (RYL) by selling the Jun 60 calls and buying the Jun 65 calls for a credit of $1.25 a share, RYL has taken a nose dive. The sharp drop now enables me to give some of the $1.25 a share credit back and assure that the overall trade is profitable. In addition, with the stock turning up today, I'll still own the Jun 65 calls at no cost and stand to profit even more if the stock now moves up. I am placing an order to buy to close the Jun 60 calls (RYLFL) at a limit of $0.80 for the day. If filled, I will be giving back 80 cents of the original $1.25 credit which means that the overall trade will at least make 45 cents a share and I still have the opportunity to profit on the 65 calls I am keeping. This trade is the kind I really love. DISCLOSURE: At the time of publication, I am long the Jun 65 calls and short the Jun 60 calls on RYL. Sincerely, Bill Kraft
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