Selling Swing: creating butterfly by adding to the 605 wee
Posted: Wed Apr 25, 2012 1:02 pm
Selling Swing: creating butterfly by adding to the 605 weekly calls short at 8.00-7.90 same contract amount as our long 610 leg and locking in profits on the 635 calls short. so we now are long 600 short 605 long 610 . A significant intraday negative is on the verge of clearing on my formulas on so wish to be on the safe side even though still think these pullbacks are intraday shakes. If this terns out to really be a shakeout and instead we end up seeing a setup for a move into the close then the next steep would be to ad to the 610 long and make the butterfly of balanced, or just take a strait loss on 605 and leave the long legs fully bullish.
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 !!