[Creating Spread against LEAPS Calls on Sirius Satellite Radio (SIRI)/Selling to Open Dec 5 Calls (QXOLA)/Day Order/Limit $0.40]
Dear Member:
I own the Jan '08 2.50 LEAPS calls on Sirius (SIRI) and paid $3.10. I already reduced that cost (risk) by a nickle on an earlier spread. Today, SIRI gapped down on fairly strong volume so I want to reduce risk further and add a little income at the same time. I am placing an order to sell to open the Dec 5 calls at a limit of $0.40 for the day. If filled, that will bring in 40 cents a share, reduce the overall risk by that amount and create a 2.50/5 diagonalized calendar spread.
DISCLOSURE: At the time of publication, I own the Jan '08 2.50 calls on SIRI.
Sincerely,
Bill Kraft
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