Calendar spread question?

Answers:0   |   LastUpdateAt:2012-08-04 16:01:02  

Asked at 2012-08-04 16:01:02
When YHOO was at $15.55, I traded the following Calendar spread.

(A) Bought (Buy To Open) 1 Jan 2013 $10.00 Call @ $5.95 Premium
(B) Sold (Sell To Open) 1 Jul 2012 $15 Call @ $2.05 Premium.

So I received credit of 100*$2.05 and debit of100*$5.95.

I did this based on the price movements of Yahoo in recent times. Now I am concerned about the (B) trade above...does it have unlimited downside risk? Did I sell an uncovered call?

Bottom line, what will be my profit or loss for both trades if for following three scenarios.

1) If before Jul 2012, Yahoo is at $12
2) If before Jul 2012, Yahoo is at $18
3) If before Jan 2013, Yahoo is at $12
4) If before Jan 2013, Yahoo is at $18

I am getting more confused as I try to do this myself. Please help.

- Thanks in advance from a first time Call Option writer and a novice option trader.

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