Buying Long Term: Creating a 200 240 280 cCB for -.30 = Calendar Call Butterfly July Lets look back, we entered 280 Jan
Posted: Fri Jan 27, 2023 10:03 am
Buying Long Term: Creating a 200 240 280 cCB for -.30 = Calendar Call Butterfly July
Lets look back, we entered 280 Jan 2024 calls before at 5 bucks there now 16 bucks but we can use this to enter what is known as a calendar butterfly by buying closer in in time July 200 calls and double shorting July 240 calls against this existing January 280 call position. So it’s like getting paid to buy 200 July calls. Where now premium decay becomes our friend, and we’re using the high Vega environment to our favor. In other words we are getting the 200 July calls for less than free
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 !!
Lets look back, we entered 280 Jan 2024 calls before at 5 bucks there now 16 bucks but we can use this to enter what is known as a calendar butterfly by buying closer in in time July 200 calls and double shorting July 240 calls against this existing January 280 call position. So it’s like getting paid to buy 200 July calls. Where now premium decay becomes our friend, and we’re using the high Vega environment to our favor. In other words we are getting the 200 July calls for less than free
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 !!