May 14, 2013 Trade Alert - Big Bear Portfolio

In-the-money short options can end up hurting us if the stock continues to move higher:

BTC 2 SPY May-13 164 calls (SPY130518C164)
STO 2 SPY May-13 165.5 calls (SPY130518C165.5) for a debit of $.77  (buying a vertical)

BTC 2 SPY May-13 161 puts (SPY130518P161)
STC 2 SPY Jun-13 161 puts (SPY130622P161) for a credit of $1.41  (selling a calendar)

BTO 1 Jun-13 165 put (SPY130622P165)
STO 1 May-13 165 put (SPY130518P165) for a debit of $2.03  (buying a calendar)
 
Be prepared to change these price limits by $.05 or more in order to get an execution.
 
Happy trading.
 
Terry