Traders Playground

Selling Swing: covering shorts AAPL 340 April calls at .56 area from 1.35 then going long 2x OVERSIZED and covering short and reversing it long NFLX 240 April calls at 1.10-.19 . The AAPL 340 April calls short was a strategic move to, after we were wrong about bullish positions last week trough long calls. Last week we bought AAPL 355 April calls 2x oversized then we bought 1x oversized the 350s and then we bought 1x oversized the 345s, so when we used all those long calls yesterday that opened up at a loss and made all the combined contract amounts into a huge vertical by shorting the 340 puts at 1.35 it became an enormous 6.5 X OVERSIZED short on AAPL APRIL 340 calls. now this was because the contract premium was higher at 1.35 than the long on last week calls that we entered between .50s - .90s on every strike. thats a HUGE short and the vertical took a bad 3 positions and reversed them into a signal vertical that became not only an eraser of losses but today as we cover we move into profits , big smiles. Wanted to explain the strategic importance of reversing a long options position and making it vertical short even if its several strikes at a key point. so now still hold all the long calls positions all strikes. On NFLX the short was 1x oversized so just covered the calls and then went long the calls, so much simpler hehehe.