[Weekend Summary]
Dear Member:
Amazingly enough, the climb continues. Each of the major indices rose again this week so the old adage "play it until it breaks" remains in force.
Today I opened a diagonalized calendar spread on Smith & Wesson (SWHC) as it broke out following an announcement of record earnings. I bought the '09 12.50 '09 LEAPS calls and sold the Dec ('07) calls for a debit of $4.25. I sold the short leg to reduce my overall cost in the long position. Though I will try to avoid being called out, if I were, the position would still make 75 cents before commissions which would be a 17.6% return by December.
The LEAPS calls on Tesoro (TSO) are currently back in the profit column and I brought in some income by selling the Jul 46 puts on the Q's to create a spread against my existing long position in the Sept 44 puts.
All of the spreads on Citigroup (C), SPY, and Sirius Satellite Radio (SIRI) continue to require no adjustment and are doing fine.
Thanks for subscribing.
Bill
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