Buying Swing: Creating Butterfly on by going long 135 wee
Posted: Tue Feb 07, 2012 2:43 pm
Buying Swing: Creating Butterfly on by going long 135 weekly puts at .90 area same contract amount as we are short 134 puts and long 132s. Since we end up with 2 long legs and a short leg in the middle we find ourselves in a butterfly at a stock level close to the day highs, this way if we move back up we can take a loss on this long at around .79 mental stop or a day high pass and again find ourselves in a credit spread. We have data at 3pm consumer credit and wish to be protected into the data release and if its positive data remove this new 135 long leg quickly.
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 !!
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 !!