[Buying to Close Short Leg of SPY Spread/Buying to Close Aug 129 Calls (SPYHY)/Day Order/Limit $0.25]
Dear Memher:
Ten days ago, I sold the Aug 129 calls (SPYHY) against my long Dec '07 120 calls to create a diagonalized calendar spread. I got 70 cents a share. I am now placing an order to buy to close those Aug 129's at a limit of 25 cents for the day. If filled, that will result in a realized gain before commission on the Aug 129 calls of 45 cents a share and will reduce the risk in the long position by that amount as well.
DISCLOSURE: At the time of publication, I am long the Dec 120 calls and short the Aug 129 calls on SPY.
Sincerely,
Bill Kraft
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