Buying Swing: AAPL had a gap up but unfortunately we have o
Posted: Thu Oct 23, 2014 10:24 am
Buying Swing: AAPL had a gap up but unfortunately we have our positions in butterflies now.
So first we wanted to se if there would be a gap cover so we legged into a
103 104 pDS with .15 spread in mind at .23-.24.
(That means that mental stop is .08 area for that entry)
We do not have a continuation kicker on AAPL so we
bought 105 calls same contract amount as the 104 position at .30.
(we chased this entry but since we now have a 100 101 103 cB and a 102 103 104 cB we need a kicker if AAPL dose not stop running. This entry gives us additional flexibility moving forward including the ability to exit the 104 leg if it gets above 1.20 ish.
A move like removing the 104 leg there would replace the 104 wing with the 105 wing with only 1x risk added.
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 !!
So first we wanted to se if there would be a gap cover so we legged into a
103 104 pDS with .15 spread in mind at .23-.24.
(That means that mental stop is .08 area for that entry)
We do not have a continuation kicker on AAPL so we
bought 105 calls same contract amount as the 104 position at .30.
(we chased this entry but since we now have a 100 101 103 cB and a 102 103 104 cB we need a kicker if AAPL dose not stop running. This entry gives us additional flexibility moving forward including the ability to exit the 104 leg if it gets above 1.20 ish.
A move like removing the 104 leg there would replace the 104 wing with the 105 wing with only 1x risk added.
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 !!