Selling Swing: turning puts weekly debit to credit spread

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: turning puts weekly debit to credit spread

Post by MMASSASSIN »

Selling Swing: turning puts weekly debit to credit spread by shorting 640 weekly puts at .63 area while covering short 630 puts at .34 area from 1.00 entry. This leaves us with 640 / 635 weekly puts credit spread when friday we had a 635 / 630 debit spread. the intent of this play is to remove losses on the puts side. And if we pass the day highs then roll up to a new credit spread 645 / 640 . and smiles on our calls 700 / 705 debit spread that is up on this news of apple decisive lawsuit win. The strategy here will be to remove risk by shorting credit spread same contract amount 705 trough 710 calls creating a butterfly, and removing risk of loss.

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”