Selling Swing: exiting AAPL 128 calls same contract amount
Posted: Wed Feb 01, 2017 2:11 pm
Selling Swing: exiting AAPL 128 calls same contract amount as the 129 calls then were buying AAPL 128 127 126 cOB cal open body butterfly twice the contract amount of the 125 calls leg.
To explain we entered yesterday a 125 126 128 cB call butterfly with a 129 kicker. Now were exiting as much 128 calls as much as the 129 calls turning what used to be a debit balanced butterfly into a 3 wing more centered butterfly. AAPL reached the 50% fib extension dating back to 2012 so on top of locking in some of the profits while premium was high, we also bought twice the contract amount a put butterfly thats open body but we are ready to enter the double short if AAPL goes higher.
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 !!
To explain we entered yesterday a 125 126 128 cB call butterfly with a 129 kicker. Now were exiting as much 128 calls as much as the 129 calls turning what used to be a debit balanced butterfly into a 3 wing more centered butterfly. AAPL reached the 50% fib extension dating back to 2012 so on top of locking in some of the profits while premium was high, we also bought twice the contract amount a put butterfly thats open body but we are ready to enter the double short if AAPL goes higher.
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 !!