[Creating Spread on SPY/Selling to Open Aug 129 Calls (SPYHY)/Day Order/Limit $0.65]
Dear Member:
The SPDR SP-500 (SPY) that tracks the SP-500 has hit resistance at 128 and bounced down. I already own the Dec '07 120 LEAPS calls and I now see a chance to bring in some income and reduce the risk in my long term position. I am placing an order to sell to open the Aug 129 calls (SPYHY) at a limit of $0.65. If filled, I will have a diagonalized calendar spread (short the Aug 129 calls and long the Dec 07 120 calls).
DISCLOSURE: At the time of publication, I own the Dec '07 120 calls on SPY.
Sincerely,
Bill Kraft
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