[Creating New Spread Against SPY Calls]
Dear Member:
As the decline continues, I want to reduce risk further and bring in some income against my Dec 140 calls on SPY. I am placing an order to sell to open the Feb 137 calls (SFBBG) at a limit of $0.96. Since I am long the Dec 140 calls, this will be a covered position and would create a diagonalized calendar spread. Diagonalized because of the different strikes and calendar because of the different months.
DISCLOSURE: At the time of publication, I am long the Dec 140 calls on SPY.
Sincerely,
Bill Kraft
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