Selling Swing: turning butterfly into credit spread by sell
Posted: Thu Aug 09, 2012 12:12 pm
Selling Swing: turning butterfly into credit spread by selling 620 weekly calls at 2.70-.60 and adding 630 calls at .25 . since we still hold the 625 calls leg this moves us into a credit spread, We still hold the 615 butterfly and if we see market lose day lows we would remove the body, if we bounce strongly here then would also turn this puts into credit spread leaving us with a iron condor= credit spread on both puts and calls where we profit as long as stays between 625 and 615. Today is thursday so depreciation should happen much faster . As I send this has bounced a bit and the calls 620 calls are up to 3.00 so its working against us but not ready short the puts just yet to create the iron condor.
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 !!