Friday, July 17, 2009

DELL spread #2

I opened another bear call credit spread on DELL.

I bought the Aug. 14 call for $0.14 and sold the Aug. 13 call for $0.40

I did this in a 4/3 ratio. I bought 4, 14 calls for every 3, 13 calls I sold. This way if the position goes against me I can sell some more premium.

PS yesterday's SPY spread was up over 20% overnight.

Ryan

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