We held out with patience, and it paid off like a charm. IBM is following the technical charts better than expected, and we are now ready to complete the second part of this trade. Selling the at-the-money, front month calls will allow us to take in another credit to our account. This will also help lower the cost basis of the leaps we bought last week.
Don’t worry if you did not get into this trade with us. When IBM pulls back to fill the gap, you can get back in by purchasing the leaps, and then you can follow along with us. I think this is going to be a very profitable position for us all.
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