Buying Swing: Next Week strategy buying 550 545 pDS for a
Posted: Fri Dec 27, 2013 3:21 pm
Buying Swing: Next Week strategy
buying 550 545 pDS for around .90 spread
and a 550 545 540 pB for .40 spread area. This puts butterfly we wish to turn into a credit if there is no follow trough weakness. The main reason for this butterfly is to protect long term 545 jan calls profits just for incase even though feel bullish moving forward. We do not wish to short calls against long term position here since a move up to 580 could come fast.
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 !!
buying 550 545 pDS for around .90 spread
and a 550 545 540 pB for .40 spread area. This puts butterfly we wish to turn into a credit if there is no follow trough weakness. The main reason for this butterfly is to protect long term 545 jan calls profits just for incase even though feel bullish moving forward. We do not wish to short calls against long term position here since a move up to 580 could come fast.
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 !!