Buying Swing: releasing body of butterfly by covering 1/2 o
Posted: Thu May 10, 2012 10:22 am
Buying Swing: releasing body of butterfly by covering 1/2 of the 580 weekly calls short at 1.30-.40. Now this leave our butterfly unbalanced where we have the same contracts on the 757 580 and 585 legs instead of twice the contracts on the short body. This way if takes off here then we have a huge bullish stake on 575 calls that is open. Now this leaves us venerable to lose the profits on the 575 weekly calls so we have to be prepared to add back this short stake quickly if we end up being wrong about looking for bullish followthrough.
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 !!