[Closing Short Leg of Diamonds (DIA) Spread/Buying to Close Aug 112 Calls (DIAHH)/Day Order/Limit $1.60]
Dear Member:
The Dow Industrials continue to move up and the Diamonds (DIA) do not look like they will get below 112 by expiration tomorrow. I placing an order to close the short leg of my bearish spread by buying to close the Aug 112 calls (DIAHH) at a limit of $1.60. I am keeping the 113 calls that I am long for the moment. Closing one leg this close to expiration is a riskier proposition than closing the whole spread and taking a relatively mild loss. However, I am going to see if the Dow can move up later today and put even more intrinsic value into the 113 calls.
DISCLOSURE: At the time of publication I am short the Aug 112 calls and long the Aug 113 calls on DIA.
Sincerely,
Bill Kraft
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