Selling Swing: creating credit spread on 141 weekly puts n
Posted: Fri Apr 27, 2012 3:04 pm
Selling Swing: creating credit spread on 141 weekly puts newt week expire trough 142 next week expire calls at a spread of .40 OVERSIZED . and buying 138 weekly puts next week expire at .31 area OVERSIZED. We have seen 5 days worth of gains in the markets and this is a good time to start betting bearishly, for if we were to fall the credit spreads will lose premium fast plus the long leg is very cheap since everyone has turned so bullish now. But if we do have strength its easy to tern this long leg into a credit spread by shorting closer to the money.
This trade is one part of a larger strategy so please look back at Previous posts to see the whole picture. AND IF YOU ARE NEW, PAPER TRADE FOR AT LEAST A FEW MONTHS because this is ADVANCED OPTIONS TRADING !!
This trade is one part of a larger strategy so please look back at Previous posts to see the whole picture. AND IF YOU ARE NEW, PAPER TRADE FOR AT LEAST A FEW MONTHS because this is ADVANCED OPTIONS TRADING !!