[Creating Spread against Sirius Satellite (SIRI) LEAPS]
Dear Member:
With the announcement of a proposed merger between Sirius (SIRI) and XMSR the stock has popped a bit this morning. I am taking the opportunity to sell some calls against my LEAPS position to bring in income and substantially reduce risk in the underlying position. I am placing an order to sell to open the Jan '09 5 calls (OAJAA) on SIRI at a limit of $0.70 for the day. If filled, it will be a covered position since I am long the Jan '09 2.50 calls.
DISCLOSURE: At the time of publication, I own Jan '09 2.50 calls on SIRI.
Sincerely,
Bill Kraft
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