Buying Swing: creating Debit spread on by going long 600
Posted: Mon Apr 23, 2012 11:41 am
Buying Swing: creating Debit spread on by going long 600 calls and shorting 605 calls 1.30 the spread. This is a bullish position that I do not mind holding into the event . Also buying 610 weekly calls at 5.75 area OVERSIZED with no short leg protection. so now have a 2x oversized stake on calls bullish on into the earnings tomorrow. My thinking here is that just last week we had above 620 so if after earnings if they are good we could easily see a move above last week highs and that would make this 610 position a 100% gainer with unlimited potential, plus 384% gainer on the debit spread. Plus if we do not run and instead have sideways or down action that dose not get us bellow 535 then we lose nothing since we still have the 535 puts credit spread and the 515 puts credit spread 2x oversized the spreads from entry.
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 !!