Traders Playground

Selling Swing: shorting NFLX 245 May calls at .75 area vertical trough 250 May calls at .30-.34 area. When we short always when we short people may be confused by the post of trough another strike. Its a vertical short always that means you short one strike and you go long a further out of the money strike of the same contract amount. The reason you do this and those of you who came to the class know its to protect yourself. Also oversized is the larger number minus the smaller number then U get the spread and that would be in this case .75 - .35 = .40 so you short as if the position was a 40 cent option. The only reason im explaining this is because I have received a lot of emails on the subject .