Update: VIP 40/35 Calendar turned Diagonal

My Long VIP call transformed last month into a 40 Calendar.  This month it transforms yet again in to a Diagonal.

The  Jan08 40 Call was looking like it was going to expire worthless so I chose to sell the Feb08 35 Call  against my current Long JUL08 40 Call knowing that the margin would only be tied up for one day until the Jan position expired.

STO VIP FEB08 35  Call @ 2.20

Cost basis is  $4.00

ROI = ~ +50%

Support is at ~30.00 (Fibonacci Retracement level and previous resistance turned support.)

Resistance is at  ~$36.00 (Fibonacci Retracement Level and previous support turned resistance. Gapped down below that level when it broke out of the bearish channel.)

MACD & STOCH are low and could turn around.  For this reason I would expect a bounce up to test the 36 resistance level next week.

Earnings should be in February.

Exits:

1) If below 35 let expire worthless – Sell at the money strike for March.

2) Buy Back if gaps and closes above 40

3) Roll to next month if trading at or a little above 35  14-7 days till expiration.