Buying Swing: locking in 1.75 x oversized profits on 600 w
Posted: Fri Jul 06, 2012 1:10 pm
Buying Swing: locking in 1.75 x oversized profits on 600 weekly puts short and rolling it up to a new 605 trough 600 credit spread at 1.50 area 2x oversized. Now if we were to see weakness again then would look to buy same contract amount of the 595 next week puts as an intraday hedge since next week options don't get hit by theta same way plus want to have a beginning position for next weeks strategy. Remember we have a 2x oversized loss on 610 calls from today so profit only erases earlier losses as a hedge should do, but this new position moves us into a new profit strategy.
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 !!