After several weeks self-studying, I still cannot understand how to realize the profit the way you suggested.

To remind you briefly, I was hypothesizing a $15/$20 call spread of MOT, and assumed to realize the profit when the stock price hits $19. My question was that I was not sure how to “realize the profit”. Your previous reply is at:

http://www.haiguinet.com/bbs/viewtopic.php?p=1217380&sid=ae6d21eb7be6441913a129d4273f66bd

Once MOT stock reach 19 and you conclude there is enough profit in your 17.5/20 leap spread, just close out the spread to realize the profit.

Depending on the brokerage firm you use to trade, either sell the call spread with a single close out order

OR

Execute two seperate trades ro close out your existing position.

Spread:

Long 17.5 Call
Short 20 call

Two trades to close / flat out the positon.

Sell close 17.5 call
Buy close 20 call

I am very sorry to say, but I can not figure out how this works. What shall I do with the 15/20 spread? Before I do what you suggested above, what do I have in my hands? The $20 call is sold, so I have nothing to do with it now. What I have is the $15 call. What should I do with it? I longed $15 call and shorted $20 call in the beginning, and now what has the long $17.5 call & short $20 call to do with it? How can I profit from this process?

These questions may sound very naïve to you, but I am really lost. Your answers will be highly appreciated.