Selling Swing: with market strength this morning am conside
Posted: Thu Jul 26, 2012 9:10 am
Selling Swing: with market strength this morning am considering removing the 575 weekly puts leg and moving it down to 565 puts to create a very large 570 565 weekly puts credit spread. and if shows strength then would also remove 1/2 of the butterfly body to create an open body butterfly. The intention would be to close up the body middle leg of the butterfly once it has gained strong premium hopefully on a bounce to 585. If shows weakness then would do the opposite on that whole strategy laid out. Ill be back around 11 am, have some outside biz to take care of.By the way, opening up the butterfly is something U only want to do when U feel strongly that a move is coming, best to wait passed rookie hour, and if you open the butterfly be quick to close it if u have an oversized loss. Creating the credit spread is something U can do earlier in the day than the butterfly since premium decay will work in your favor this thursday one day before expire.
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 !!