[Creating Spread against Anadarko Petroleum (APC) LEAPS]
Dear Member:
Anadarko Petroleum (APC) gapped down this morning and that presents the opportunity to sell some more calls against my Jan '08 40 calls. I am placing an order to sell to open the Jan '08 45 calls (YPCAI) at a limit of $2.85. If filled, this will be a covered position since I own the '08 40 calls and it will both bring in income and reduce risk in the long leg of the spread.
DISCLOSURE: At the time of publication, I own the Jan '08 40 calls on APC.
Sincerely,
Bill Kraft
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