Buying Swing: opening the body of butterfly by covering 1/
Posted: Wed May 16, 2012 12:11 pm
Buying Swing: opening the body of butterfly by covering 1/2 of the 545 weekly puts at 2.75 area . This leaves the 550 puts long open for additional gains with the intent of rendering the 545 puts short hopefully at a higher premium after a drop or quickly here at a loss if we do not get the follow trough bearishly. Opening up the butterfly increases both the risk exposure and the profit potential if loses its footing again today but since the risk increases dramatically, I have to be ready to renter the short on the body leg quickly as not to lose all the profits we already have.
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 !!