Buying Swing: we are now turning the puts butterfly into a
Posted: Fri Dec 14, 2012 2:23 pm
Buying Swing: we are now turning the puts butterfly into an in the money credit spread by locking in the profits on the 530 puts at 20.45-19.95. Again we don't have overall profits since were still short the 525 puts but from here on we profit 1x oversized for every 50 sent move up. ok what what do we have ? a 525 510 pCS so if se bounce back to 525 the max money we make back would be 50X oversized . Now has done nothing for hours if we do see weakness again then we would renter the 515 intend of the 530 leg and get the same effect dollar for dollar move.again placing us be arish. here we must be careful since we run the risk of getting chopped up
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 !!