Buying Swing: buying AAPL 530 puts at 1.90 area same contra
Posted: Wed Mar 05, 2014 3:15 pm
Buying Swing: buying AAPL 530 puts at 1.90 area same contract amount as the 530 calls. we have 3x oversized profit on the 530 calls so this creates protection on that position. Since the calls had a spread of .50 in mind for oversized we will give usually place the stop 50 cents bellow entry but in this case we will stop out at 1.25. So by then we would have about 1.3x loss on the puts but we would be up another 400% so 4x on the calls stake. We rather do this than just butterflying trough 535 calls here, this way we can hold of and see if we see bullish continuation later.
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 !!