Selling Swing: Creating Credit spread by selling 445 weekl

Here is where we post regarding stock picks on our swing trading ideas, from multi-day to multi-week both stock and option calls and puts, on the Nasdaq or NYSE.
User avatar
MMASSASSIN
Trading for living
Posts: 5599
Joined: Thu Jan 29, 2009 1:30 am
Contact:
Contact MMASSASSIN

Selling Swing: Creating Credit spread by selling 445 weekl

Post by MMASSASSIN »

Selling Swing: Creating Credit spread by selling 445 weekly puts at 1.35 and buying 440 weekly puts at .60 area OVERSIZED the spread. By making sure the spread is the oversized money allocation then if we have sideways action and we lose 100% on the 470 calls then we also make 100% on the short puts position . I am bullish and see a pullback on here as unlikey, but if it was to tern bearish since the 470s are so far out of the money its easy to short closer to the money calls if I had to and turn the whole strategy into an iron butterfly. I do not think that will happen but have it ask an option.

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 !!
Top

Return to “Swing for the Fences”