[Weekend Summary]
Dear Member:
The markets have continued to show remarkable strength and just when it looked like they might turn over, Mr. Bernanke's comments gave a renewed lift. All the major indices were up for the week and volatilities remain quite low so the bull appears to be alive even if a bit long in the horn.
I made a couple of adjustments to spreads last week. I bought to close the short leg (Jan '08 47.50 calls) on Anadarko Petroleum (APC) for a $0.45 per share gain on that leg. I still hold the Jan '08 40 calls and, depending what the stock does, will either sit tight as it rises or sell a lower strike call against my long position if it drops any further. I also closed the short leg of the Nadaq Stock Market (NDAQ) put spread for a loss when the stock fell on news that it was not pursuing the takeover of the London Stock Exchange. I held on to the Mar 32.50 puts which are now slightly in the money. I expect to make further adjustments to try to reduce the loss or turn it into a gain on this one.
The spreads on Citigroup (C) and SPY are still OK and require no adjustment for now.
Bea Systems, Inc (BEAS) was up for the week and is currently dealing with a resistance level. If it can't break through, I will probably sell some calls against my LEAPS calls, and if it breaks up through the resistance, I'll just try to enjoy the ride for however long it may last.
Have a wonderful weekend.
Bill Kraft
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