The LEAPS Option Trader
105 W. Monument Street
Baltimore, MD 21201
Wednesday, September 15, 2004
Email – #198
** Cover Your SMH Spread
Recent news from the tech sector is showing a downturn in spending for the upcoming year. While we entered this trade on the basis of a recovering semiconductor sector – after being beaten down to the lows – it appears that earnings estimates form the sector are indicating a more protracted recovery. We are in a slight loss position and I feel that it is prudent to preserve our remaining capital for another opportunity with greater clarity.
Buy back the Semiconductor Holders Trust (AMEX: SMH) January 2006 $45 call (YRH AI) and sell the January 2006 $40 call (YRH AH).
Regards,
Karim Rahemtulla
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Bio:
Karim Rahemtulla is the former Investment Director of The Oxford Club. The editor of The Smart Options E-Report, The Income Trader – A Covered Call Strategy and The LEAPS Option Trader, Karim is also a regular contributor to The Oxford Club Communiqué. His highly successful trading systems use covered calls and LEAPS to boost returns on blue chip stocks, and during the bear markets of 2000 and 2001, his picks outperformed the major market averages. Educated in England, Canada and the U.S. and fluent in several languages, Karim travels the world to find the best investment opportunities for our members.
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