Buying Swing: AGGRESSIVE STRATEGY Yesterday at the close on
Posted: Fri Feb 08, 2013 10:33 am
Buying Swing: AGGRESSIVE STRATEGY
Yesterday at the close on we created credit spreads on both 460 and 470 puts to make up for being fought with open body butterflies when the surprise news hit.We also created a calls 465 butterfly same contract amount as our smaller butterflies just before the surprise news happened.
Yesterday close trade-
shorted 470 puts yesterday at 5.35 area same contract amount as the long legs of our smaller butterflies.
Today that open trade -
we locked in profits on the 470 butterfly leg and shorted it at 4.20 that we entered into at .20 area so 5X OVERSIZED Profit.
but ofcorse it gives us more risk if AAPL moves higher but since we have the puts credit spread and entered that same contract amount at 5.35 yesterday we have a perfect hedge. By the way were up 6X OVERSIZED on the puts credit spread from the close. Now that amounts to 11 x OVERSIZED profit but that only erases the loss from yesterday since we were fought by the news while we were in 2 open body puts butterflies. But to erase losses that big on a news that nobody could of predicted and that created a move to fast for us to protect, I'm still happy that were overall green again. The thing is I had a 465 kicker yesterday that I turned into a butterfly literally 1 minute before the news came out, that play alone would of made us 10x profit, but since it was the end of the day and we were in the process of protecting positions overnight, we got hit at the exact wrong time (. But that ground has now been covered with strategic positioning after the fact yesterday and additional positioning planed out pre market for this open.
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 !!
Yesterday at the close on we created credit spreads on both 460 and 470 puts to make up for being fought with open body butterflies when the surprise news hit.We also created a calls 465 butterfly same contract amount as our smaller butterflies just before the surprise news happened.
Yesterday close trade-
shorted 470 puts yesterday at 5.35 area same contract amount as the long legs of our smaller butterflies.
Today that open trade -
we locked in profits on the 470 butterfly leg and shorted it at 4.20 that we entered into at .20 area so 5X OVERSIZED Profit.
but ofcorse it gives us more risk if AAPL moves higher but since we have the puts credit spread and entered that same contract amount at 5.35 yesterday we have a perfect hedge. By the way were up 6X OVERSIZED on the puts credit spread from the close. Now that amounts to 11 x OVERSIZED profit but that only erases the loss from yesterday since we were fought by the news while we were in 2 open body puts butterflies. But to erase losses that big on a news that nobody could of predicted and that created a move to fast for us to protect, I'm still happy that were overall green again. The thing is I had a 465 kicker yesterday that I turned into a butterfly literally 1 minute before the news came out, that play alone would of made us 10x profit, but since it was the end of the day and we were in the process of protecting positions overnight, we got hit at the exact wrong time (. But that ground has now been covered with strategic positioning after the fact yesterday and additional positioning planed out pre market for this open.
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 !!