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IT'S A NICE DAY TO TAKE A PROFIT

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The sun is shining. It's 60+ degrees outside and I'm a happy camper. But, then again, I'm always in good spirits when I take profits. Actually, I don't care if there's a tropical storm going on outside -- as long as I take profits, I have a big smile on my face.

Today we closed out out OSX Calendar spread and we put $1,500 in our pockets. This trade may have more room to run, but I'm not willing to risk my $1,500 to find out.

We bought back the 10 OSX April 150 calls @ $.35 and we sold our OSX September calls @ $7.80. Our credit was $7.45. It originally cost us $5.95 to put on the trade. Therefore, our profit is $1,500.

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Here is a review of our original position:

April CPTI Position #2 - OSX Calendar Spread

We bought 10 OSX September $150 calls @ $8.30 and sold 10 OSX April $150 calls @ $2.35. Our out of pocket cost is about $5.95 ($5,950).

Our price target for the next six weeks is about $150. If we're right, we should make a nice chunk of change. Even if OSX goes nowhere, we will not have risked a great deal. The $2.25 we took in from the short April call will erode away and will help to offset any premium erosion from our long Sept. $150 calls.

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