Options Message Board - Msg: 13596454

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Strategies & Market Trends : Options

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To: tekboy who wrote (7635)	5/6/2000 10:41:00 AM
From: Tom K.	Read Replies (1) of 8096

... What would the most sensible thing to do with these .. A lot depends on what your original objective was for the purchase and why that may have changed. I've not personally had this situation so I'm not speaking from experience, however, you could consider.... Sell the Jan 220 CALLs back = +18.5 Sell the Jan 220 CALLs again = +18.5 Buy the Jan 210 CALLs = 20.75 This would leave you with a spread at +17.75 (less your original cost). In any case, that should position you to be that much better off than where you are now. If the stock rallies above 220, you get the spread value for an additional +10. If it stays down, you have capped your loss at less than what it is sitting with the plain LEAP. Again, I've not done it so I'm only referencing my limited knowledge, but this might trigger some additional thinking regarding alternatives. The real key is to revisit your objective for the trade in the first place. Good luck. Tom

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