Traders Playground

Buying Swing: into next week on we wish to create a debit spread on calls 585 weekly calls through 595 weekly calls 1x oversized plus a 2x oversized credit spread on 595 weekly calls through 600 weekly calls. What this dose is if moves up we make money and if we go sideways and have a 100% loss on the debit spread we still make 1x oversized profit since the since the credit spread is twice the money allocation. This is only the calls side of the strategy. On the Puts side wish to buy debit spread 565 weekly puts trough 555 weekly puts 1x oversized. Now that we add the puts debit spread we end up not losing anything if goes sideways, we also make money on a move up plus if we fall strongly we make money. The only way we can lose on this strategy would be on a move approaching 600 bucks on something i find unlikely due to the bad earnings.

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 !!