[Closing Short Put Leg of Condor on Lehman Bros (LEH)]
Dear Member:
Lehman Bros (LEH) has fallen well below the $50 strike price of the short put leg of my iron condor. I am placing an order to buy to close that leg only at a limit of $4.80. The order I am placing is buy to close the Mar 50 puts (LESOJ) at a limit of $4.80. If filled, I will still be holding the very profitable bearish call spread of the iron condor and a long position in the Mar 45 puts. I am trying to regain at least a portion the loss I will take by closing the Mar 50 puts with further downward movement of the stock which should cause an increase in the price of the long put position.
DISCLOSURE: At the time of publication, I hold the positions set out above.
Sincerely,
Bill Kraft
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