[Creating Spread against Anadarko Petroleum (APC)]
Dear Member:
Anadarko Petroleum (APC) has fallen with the rest of the oil sector. I own the Jan '08 $40 calls (YPCAH). I don't expect the sector to stay down forever so I am holding that long position and creating a spread against it by selling to open the Jan '08 $47.50 calls (YPCAW) at a limit of $3.00 for the day. If filled (and it should be since the bid is currently $3.10), that will reduce my risk in the position by at least $3 before a small commission and bring some income into my account.
DISCLOSURE: At the time of publication, I am long the Jan '08 $40 calls on APC.
Sincerely,
Bill Kraft
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