Buying Swing: buying long leg of 188 187.50 pDS put debit
Posted: Wed Apr 02, 2014 11:30 am
Buying Swing: buying long leg of 188 187.50 pDS put debit spread at .50-.52 with a .12 spread in mind. On friday we went very bullish with what seamed a unlikely 189 190 191 call butterfly at .04. That position call butterfly is now up 500% with a max profit 2400% and thats not mentioning our 191 strait long. With profits this high and max profits so much higher at 24x we ned to protect aggressively with some bearish positioning . This bearish bet here is to create some profit protection where .12 is oversized in mind meaning the mental stop on the 188 puts is .39. If we get stopped out it would most likely mean that the 190 call butterfly, with its large additional profit potential, would move in the money . Hence getting stopped out of the protection would be a good thing.
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 !!