Selling Swing: turning butterfly into larger credit spread

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MMASSASSIN
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Selling Swing: turning butterfly into larger credit spread

Post by MMASSASSIN »

Selling Swing: turning butterfly into larger credit spread by selling 595 july puts at 2.25-2.12 and adding same contract amount to the 585 July puts at .60 cent area. . Since we are doing nothing with the body of the butterfly the 590 leg this makes this credit spread twice the size it was yesterday. I do not think we wil retries to 590 so wish to profit of sideways action since the theta is so high on these 590 puts.

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 !!
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