On Tue, 16 Mar 2010 04:33:12 -0000, "RobertH"
<robhansen5252@hotmail.com> wrote:
>In late February, I bought a Mar/Apr IWM call calendar at the 56 strike for 0.20. I paid $200 for this directional bet with IWM around 62 at the time. Well, the market certainly didn't go down, so I want to exit this trade. I was under the impression that if you bought a calendar spread, the most you can lose is the amount you paid. But to unwind this trade, I have to buy back the March call at $11.61 and sell the April call at $11.45 for an additional loss of 0.16. How can I get out with only a $200 loss?
>
>Thanks,
>RFH
Wait until you are assigned the March calls, forcing you to sell IWM
at $56 and then buy back the short IWM shares with the April calls at
$56. You will have to add the cost of two stock trades to the $200
bill.
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