Traders Playground

Buying Swing: Covered SPY 209 this week puts at .25 turning a pCB pCOB put calendar open body butterfly since we are long next week 209 puts and long 208 this week puts. This places us bearish intraday since we locked in profits on the much faster decaying this week puts and held next week puts. Now if the market sees more strength the next part of strategy will be to short 210 puts for this week against the 210 puts for next week but twice the contract amount creating credit risk. This would be a position that would have to be tightly monitored and risk that we could not hold overnight. Instead again if we move bullish we would before the close look to buy further up next week puts against this short or double 210 next weeks to erase the credit risk but still profit from calendar premium decay.

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 !!