[Closing Smith & Wesson (SWHC) Spread]
Dear Member:
Smith & Wesson (SWHC) dipped with the markets last week and both the short leg (the Jan '08 20 calls) and the long leg (the Jan '09 12.50 calls) are in profitable territory. I am going to close the whole spread and take the profits at this time.
I am placing an order simultaneously to buy to close the Jan '08 20 calls (UWJAD) and sell to close the Jan '09 12.50 calls (ZUKAV) on a limit order for a credit of $5.30. If filled, I will make 25 cents a share on the short leg and $1.26 on the long leg. I had earlier made 15 cents when I rolled to the Jan '08 20 short leg so overall, I should enjoy a $1.66 a share profit.
The results of the trade will be posted in the Table as soon as my email is repaired. My email is on the fritz at the moment. Seems like something always goes wrong when I go away.
DISCLOSURE: At the time of publication, I hold the above referenced spread.
Sincerely,
Bill Kraft
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