Buying Swing: at open we bought long leg of AAPL 106 105 pD
Posted: Tue Jan 20, 2015 10:11 am
Buying Swing: at open we bought long leg of AAPL 106 105 pDS put debit spread at .98 area with a .23 spread in mind. We will for not keep that position exposed , and we have a mental stop at 1x loss where we enter the short leg 105 puts.
Now that we have held the bottom trend line of the symmetrical triangle and we have bearish exposure, we are turning AAPL 109 110 111 cB call butterfly into a cOB call open body butterfly
by covering the short leg of the AAPL 110 puts at .53 area
creating a AAPL 109 110 111 cOB call open body butterfly. This is a very big exposure since the spreading mind is .05 so at a 2x loss we must look to renter the body short mental stop, but that should be hedged by the much smaller puts bearish position.
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 !!
Now that we have held the bottom trend line of the symmetrical triangle and we have bearish exposure, we are turning AAPL 109 110 111 cB call butterfly into a cOB call open body butterfly
by covering the short leg of the AAPL 110 puts at .53 area
creating a AAPL 109 110 111 cOB call open body butterfly. This is a very big exposure since the spreading mind is .05 so at a 2x loss we must look to renter the body short mental stop, but that should be hedged by the much smaller puts bearish position.
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 !!