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Buying Swing: opening butterflies by removing bodes complet

Posted: Fri Jul 27, 2012 10:58 am
by MMASSASSIN
Buying Swing: opening butterflies by removing bodes completely. Covering 370 weekly puts at .34-.38 and covering 580 puts at .10 area. We are holding all the long legs on both calls and puts putting us in a 575 straddle since were both long 575 puts and 575 calls that expire today. Worst case sinerio here would be that 575 becomes the final pin, best case sinerio is a more other up or down we profit with unlimited gains in both directions. Because of the removal of the bodes of the butterflies we know have both these plays free with no risk of loss.

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 !!