Thursday, September 17, 2009

[TheOptionClub.com] Re: Can I Do This?

 

Jeff,

I don't know if you're crazy, but you're not appreciating the full
picture. If you buy the 44 call you will have closed out your short
call position. If you sell a 45 call you will close out your long call
position. My guess is that you're thinking you can simultaneously be
long a 45 call and short a 45 call in the same account. Even if you
could, your two positions would cancel each other out. Whether you want
to realize your .61 loss or not, it really is there and no amount of
creative thinking or wishing will make it disappear.

Christopher Smith
TheOptionClub.com

--- In OptionClub@yahoogroups.com, "JeffreyW" <jeff@...> wrote:
>
> I have a SEP Bear Call Spread on JPM at 44/45. As of this moment, the
44 is ITM (JPM 44.65).
>
> Just asking, but is there any reason why I cannot buy back the 44 and
sell a 45? I would then have a 45/45. If I just closed this I would take
a loss of .61, but if I did the above, my loss would be .48 no matter
what the price does today or tomorrow.
>
> Am I crazy?
>
> - Jeff
>

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