stock share, buy stock

[Rolling Short Leg of Smith & Wesson (SWHC) Spread] Dear Member: Smith & Wesson (SWHC) is above the strike price of my short leg, the Dec 17.50 calls (UWJLW), and I could be assigned (though that isn't very likely right now). In diagonalized calendar spreads such as this one where I am short the Dec 17.50 and long the Jan '09 12.50 calls (ZUKAV) I want to avoid assignment so I am placing an order to roll my Dec 17.50 call leg up to the $22.50 strike and out to Jan '09 for a net credit before commissions of $0.15. If filled, I will have a $12.50/$22.50 spread or the opportunity to bring in $10 bucks a share if the stock price gets to $22.50 by expiration. I'll also be in a position to adjust up and down with price movement to attempt to generate more gains as time goes forward. My order will be to simultaneously buy to close the Dec 17.50 calls (UWJLW) and sell to open the Jan '09 22.50 calls (ZUKAX) for a credit of $0.15. DISCLOSURE: At the time of publication, I am short the Dec 17.50 calls and long the Jan '09 12.50 calls on SWHC. Sincerely, Bill Kraft
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