Your "joined date" doesn't mean anything. ET has been around longer than 1 week and 99% of the people here are on their 2nd, 3rd 4th or whatever ID.
---
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Weekly AAPL Butterfly Ideas from Jeff Augen
- Thread starter comintel
- Start date
Your "joined date" doesn't mean anything. ET has been around longer than 1 week and 99% of the people here are on their 2nd, 3rd 4th or whatever ID.
---
I cannot understand why he uses a short butterfly instead of a credit spread (see in his webinar 38th minute)? Stock at 620.
615 -1 5.0
620 +2 0.73
625 -1 0.00
credit received: 3.54
What is the point of using 625 here?
Also it is not clear to me what will happen with this spread later because the short 615 is in the money. Do I need to buy it back or let it expire? And if I buy it back what will be my profit in result?
615 -1 5.0
620 +2 0.73
625 -1 0.00
credit received: 3.54
What is the point of using 625 here?
Also it is not clear to me what will happen with this spread later because the short 615 is in the money. Do I need to buy it back or let it expire? And if I buy it back what will be my profit in result?
Quote from Twinsen:
I cannot understand why he uses a short butterfly instead of a credit spread (see in his webinar 38th minute)? Stock at 620.
615 -1 5.0
620 +2 0.73
625 -1 0.00
credit received: 3.54
What is the point of using 625 here?
Also it is not clear to me what will happen with this spread later because the short 615 is in the money. Do I need to buy it back or let it expire? And if I buy it back what will be my profit in result?
Not speaking for Jeff but I have done some short flys on fast moving stocks. However its usually as an adjustment. Perhaps he wasn't getting the credit he wanted on the credit spread. most people would just buy back the shorts for a nickel rather than closing the entire spread. I prefer doing these on indicies and just let them expire OTM.