[Opening Position in LEAPS Calls on Knight Capital Group (NITE)]
Dear Member:
Knight Capital Group (NITE) has recently broken through a resistance, formed a reverse head and shoulders and is continuing a trend up that began early this year. I am placing an order to buy to open the Jan 2010 $17.50 LEAPS calls (YTIAW) at a limit of $4.80. Since the open interest is still low in this far out expiration, I am taking a position 1/3 the size of what I might ordinarily enter. Currently, these calls have a delta around .66 and the implied volatility is relatively low.
DISCLOSURE: At the time of publication, I have no position in the referenced calls or the underlying stock.
Sincerely,
Bill Kraft
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