Buying Swing: TSLA continuing calendar call protection 250
Posted: Fri May 08, 2015 12:25 pm
Buying Swing: TSLA continuing calendar call protection
250 255 cCCS
We're buying next week monthly 255 puts against the June 250 puts short.
We now have a situation were sooner or later we will go in the money on the June short. But we will continue to buy closer in longs against so that when we do exit we have less extrinsic value as in the money plays provide while locking in profits on the longs weeks when we do go in the money. The coming weekly calls strategy that falls on monthly expiration will hedge the risk area. So it's very important for calendar players to do the coming weekly strategy.
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 !!
250 255 cCCS
We're buying next week monthly 255 puts against the June 250 puts short.
We now have a situation were sooner or later we will go in the money on the June short. But we will continue to buy closer in longs against so that when we do exit we have less extrinsic value as in the money plays provide while locking in profits on the longs weeks when we do go in the money. The coming weekly calls strategy that falls on monthly expiration will hedge the risk area. So it's very important for calendar players to do the coming weekly strategy.
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 !!