[Creating Spread Against SPY Calls]
Dear Member:
The S&P 500 again went to resistance and is dropping off a little this morning. That is a time when I like to sell calls against existing positions. As I have done several times since I initially entered a long Dec 140 Call position long ago, I am creating a diagonalized calendar spread by placing an order to sell to open the May 145 calls ((SFBEO)at a limit of $0.35. If filled, it will bring in some more income and further reduce risk in the long position.
DISCLOSURE: At the time of publication, I am long the Dec 140 calls on SPY.
Sincerely,
Bill Kraft
|
