[Rolling Sirius Satellite (SIRI) LEAPS Calls Out a Year]
Dear Member:
In a few months, my $2.50 Jan '08 LEAPS calls (YFWAZ) on Sirius Satellite Radio (SIRI) will convert to regular options and the time value will begin to run more rapidly against me. I see an opportunity to roll these out to the Jan '09 $2.50 calls (OAJAZ)for a net debit of only $0.30 so I am placing an order to simultaneously sell to close the Jan '08 $2.50 calls (YFWAZ) and buy to open the Jan '09 $2.50 calls (OAJAZ)for a net debit (before commission) of $0.30. If filled, I will be able to trade other calls against the ones I am long for income and reduction of risk.
DISCLOSURE: At the time of publication, I am long the Jan '08 $2.50 calls on SIRI.
Sincerely,
Bill Kraft
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