Buying Swing: FULL EARNINGS STRATEGY. This is what some of
Posted: Wed Aug 07, 2013 3:25 pm
Buying Swing: FULL EARNINGS STRATEGY. This is what some of us are doing but bear in mind we have to protect very large stock holdings and long term stakes. Last year when we were at 20s our target was 150 by end of 2013, and now we are almost there, much earlier than expected. So we have chosen to take protective measures. we will work with both this week and next week monthly options. The size of the positions reflect the amount of stock you hold long term. and again we will not sell our long term stock for another 5 years no matter what.
OK LETS GET TO IT
call credit spread weekly 550/ 570 a size that matches your stock position. so if you have 3 thousand shares 30 contracts, if you have 30 thousand shares 300 contracts, its just an example.
And to compliment this we are doing Aug 450 / 555 cDS plus a 465 cB.Both Aug plays.
This way if we run we will still make money but on next week monthly calls since the credit works as a covered call position.
ON THE PUTS SIDE
Aug 125 pB.
Now the monthly puts are all other 1x or larger again depending on how much stock you own long term so that a pullback to 125 loss of stock would be partly offset with profits of the butterfly.
We also want a huge low risk 140 135 pDS we entered into the 135 short naked earlier at 11.20 - 11.00 with a 3 buck spread in mind 4x oversized the spread looking for a bounce to enter the 140 long leg at a cheaper premium. Once this play is in it will have less risk than money entered and low return hence why most of us are doing it 4x oversized or more.
also a final 1x 120 pDS monthly on top of the butterfly sharing same leg as the butterfly.
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 !!
OK LETS GET TO IT
call credit spread weekly 550/ 570 a size that matches your stock position. so if you have 3 thousand shares 30 contracts, if you have 30 thousand shares 300 contracts, its just an example.
And to compliment this we are doing Aug 450 / 555 cDS plus a 465 cB.Both Aug plays.
This way if we run we will still make money but on next week monthly calls since the credit works as a covered call position.
ON THE PUTS SIDE
Aug 125 pB.
Now the monthly puts are all other 1x or larger again depending on how much stock you own long term so that a pullback to 125 loss of stock would be partly offset with profits of the butterfly.
We also want a huge low risk 140 135 pDS we entered into the 135 short naked earlier at 11.20 - 11.00 with a 3 buck spread in mind 4x oversized the spread looking for a bounce to enter the 140 long leg at a cheaper premium. Once this play is in it will have less risk than money entered and low return hence why most of us are doing it 4x oversized or more.
also a final 1x 120 pDS monthly on top of the butterfly sharing same leg as the butterfly.
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 !!