Buying Swing: creating butterfly .71 cent spread by buying
Posted: Mon Mar 12, 2012 1:49 pm
Buying Swing: creating butterfly .71 cent spread by buying both 550 and 560 march calls and shorting twice the contract amount of the 555 calls at a .71 cents the spread oversized the spread. This makes our position bullish due to the long on 550s but it puts premium decay in our favor with the short on 555 calls being twice the contract amount. This way if we gain or go sideways premium is working in our favor.
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 !!