[Closing Short Leg of Diamonds (DIA) Spread/Buying to Close Jul 110 Calls (DIAGF)/Day Order/Limit $0.10]
Dear Member:
It looks like I can close the short leg of my spread on the Diamonds (DIA) for an overall 63.6% return before commission on the initial risk. You may recall that I opened the spread on June 8th by selling the Jul 110 calls and buying the Jul 111 calls for a net credit before commissions of $0.45. That means I took in a positive 45 cents a share. Now, I am willing to give back 10 cents of that 45 so I'll keep 35 cents a share AND I'll still own the Jul 111 calls that could make me even more (though that is doubtful since they expire Friday and the Dow would have to run up pretty fast). My initial risk was 55 cents a share and the 35 cents I expect to capture is a 63.6% return for just under 6 weeks.
I am placing my order to buy to close the Jul 110 calls (DIAGF)at $0.10 for the day.
DISCLOSURE: At the time of publication, I am short the Jul 110 calls and long the Jul 111 calls on DIA.
Sincerely,
Bill Kraft
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