Buying Swing: buying 560 weekly puts at 1.53-1.70 same con

[MMASSASSIN]

Buying Swing: buying 560 weekly puts at 1.53-1.70 same contract amount as the short on 555 weekly puts this brings us into a butterfly with an open body since we have not yet added more to the short on 555 weekly puts line. the strategy will be to see the possibility of a pullback if this market shop continues. then on a pullback we could overnight easily renter the additional short on the 555 body at a higher premium to beaf up the body of thew butterfly. Now if we were to move up I would look to add again to the short on 555 puts also to close out the butterfly and minimize risk, while at the same time covering 1/2 of the body of our calls butterfly. So in other words on a move up I would look to cover 1/2 of the short on 580 puts that way we could profit of a move up and build up the body of that butterfly before closing up the body again latter on in the day.

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 !!