Selling Swing: we exited the AAPL 111 puts leg at 4.95 area
Posted: Fri Jan 16, 2015 10:42 am
Selling Swing: we exited the AAPL 111 puts leg at 4.95 area and bought the 105s earlier at .10. This was part of the strategy we outlined yesterday where we wait for AAPL to reach the trend line support that has held true for a year now, and execute on locking in profits. Now we have a calendar 107 105 103 where the 107 expires next week and the 105 and 103 this week. Now mathematically this adds 1.10 worth of credit risk but thats offset by strategy from friday
108 106 104 pB and
104 102 101 pB
So as long as we remain inside of the larger triangle formation, this becomes a huge week on the bearish side.Remember each one of these plays had a 5 cent spread in mind.
If we can at any point exit the 106 short body at .05 mage even .10 then we will do so, effectively erasing any credit risk.
also we want to have orders to add 105 puts at .05 so that the risk into 103 no longer exists. essentially doubling that contract amount.
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 !!
108 106 104 pB and
104 102 101 pB
So as long as we remain inside of the larger triangle formation, this becomes a huge week on the bearish side.Remember each one of these plays had a 5 cent spread in mind.
If we can at any point exit the 106 short body at .05 mage even .10 then we will do so, effectively erasing any credit risk.
also we want to have orders to add 105 puts at .05 so that the risk into 103 no longer exists. essentially doubling that contract amount.
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 !!