Selling Swing: Turning butterfly calls into a 685 credit s
Posted: Wed Aug 29, 2012 11:35 am
Selling Swing: Turning butterfly calls into a 685 credit spread at .54 spread, by shorting 685 calls at 1.02 ,while covering 695s at .25 area. Also exiting 700 calls at .15 area and moving those to 690 long leg at .48 area. OK so that sounds complicated but to make it simple we just moved the short leg of the butterfly down to the 685 puts weekly strike same contract amount. so this leaves us with a 685 690 calls credit spread . Ofcorse U want to move the 700 leg down to the 690 leg to make this play cheaper margin wise and for those of you with smaller accounts the first thing you do is move the long leg down.
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 !!