[Buying to Close Short Leg on IJR Spread/Buy to Close Aug 61 Calls (JINHI)/Day Order/Limit $0.10]
Dear Member:
I currently hold a bearish call spread on the S & P Small Cap 600 Index Fund (IJR) where I originally sold the Aug 61 calls (JINHI) and bought the Aug 62 calls (JINHJ) for a credit of 25 cents a share. I am now going to try to close the short leg (Aug 61 calls) by buying to close the Aug 61 calls (JINHI) at a limit of 10 cents for the day. If filled, that will guarantee at least a 15 cent a share profit before commission overall and I will still own the Aug 62 calls at no net cost. The play could even make more if IJR jumps over the next couple of days.
DISCLOSURE: At the time of publication, I am long the Aug 62 calls and short the Aut 61 calls on IJR.
Sincerely,
Bill Kraft
|
