[Creating Spread Against SPY Position]
Dear Member:
The S&P 500 has cracked through recent support on high volume and I am going to place an order to sell some calls against my existing Dec 140 long call position. If filled, this will create a diagonalized calendar spread, bring in some income and reduce risk in my underlying position. Since I am long the Dec 140s the position is considered to be covered.
I am placing an order to sell to open the Aug 135 calls (SFBHE) at a limit of $1.98.
DISCLOSURE: At the time of publication I am long the Dec 140 calls on SPY.
Sincerely,
Bill Kraft
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