[Creating Spread Against Sirius (SIRI) LEAPS]
Dear Member:
Sirius Satellite (SIRI) had a big move (for it) up yesterday and is down today. That gives me the opportunity to sell some calls against my existing long term position to bring in some income and reduce risk.
I already am long the Jan '08 2.5 calls (YFWAZ) and I am now placing an order to sell to open the Jan '08 5 calls (YFWAA) on a day order at a limit of $0.50 or better. If filled, I will have a bullish 2.5/5 call spread, will have reduced my risk, brought in some income and assured a profit in conjunction with the other earlier adjustments I made if I happen to be called out.
DISCLOSURE: At the time of publication, I am long the Jan '08 $2.50 calls on SIRI.
Sincerely,
Bill Kraft
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