Selling Swing: shorting july 585 puts trough 580 puts at .8
Posted: Fri Jul 13, 2012 11:18 am
Selling Swing: shorting july 585 puts trough 580 puts at .80 spread area oversized . and buying 620 july calls 2x oversized at 2.07 area. So am going long the 620 calls into next week 2x oversized with the intention of shorting the 625 weekly calls before the close same contract amount and that would bring down the position to a 1x oversized stake that we hold over the weekend. Were also creating a oversized puts credit spread to finance the long position and hedge against sideways action premium decay. That way as long as dose not go bellow 585 next week we lose nothing, plus with a position so far out of the money other one of these can next week be turned into butterflies.
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 !!