Buying Swing: creating credit spread 640 trough 645 weekly
Posted: Mon Aug 13, 2012 11:04 am
Buying Swing: creating credit spread 640 trough 645 weekly calls at .60-.55 spread. The short 640 at 1.38 area and long 645 at .77 area. This is an intraday bearish bet with the intent of turning it into a open body butterfly if we have bullish follow trough by buying same contract amount of the 635 weekly calls . But ideally we see either sideways action or a retracement, that way we can enter the 635 position at a cheap price and by the close double the 640 short leg to create our butterfly. We are also looking at 615 weekly puts as a long leg with the intent of shorting the 620s on a retracement putting us in a credit spread but intraday profiting from possible retracement
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 !!