Selling Swing: creating a CALENDAR Credit spread on shorti
Posted: Thu Mar 08, 2012 1:27 pm
Selling Swing: creating a CALENDAR Credit spread on shorting 340 weekly calls at 3.15 area and buying MONTHLY march 345 calls at 5.60. Oversized the spread. Usually when you do a credit spread you focus on the same month but am choosing here to believe that this week we should have difficulty having bullish follow trough due to expire of calls but with a calendar if we do then this gives me a stronger picture if we close between 540 and 545 due to the fact that the 545s have a week left till expire. best case senerio we close bellow 540 tomorrow . BUT I am prepared to short 540 calls credit spread if we have to much strength here I may pul the trigger if we get above 540.90, we are 540.30 as I send this.
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 !!