Buying Swing: shorting 220 calls at 6.50-.30 area while co
Posted: Wed Apr 02, 2014 12:14 pm
Buying Swing: shorting 220 calls at 6.50-.30 area while covering 230 calls short at 1.50 area. turning the 225 230 debit spread into a 220 225 credit spread since were moving the shorts from one level to another without tucking the long leg. We went very bullish on on friday with this 225 230 cDS and a 225 230 235 cB call butterfly with 1500% max profit potential. Since has reached the declining trend line we are protecting profits on the butterfly with very low risk since we are up strongly on the 225 long leg from friday. This helps us keep the profit potential if we pull back into expiery , broadening the area of overall profits . If we were to snap back, then this position would protect 5x oversized.
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 !!