Options Room Weekly Strategy – September 24-28, 2012

**This was Strategy Sheet each day for $AAPL $GOOG options**

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MM – Advanced Option Strategy Plays (Sept 24 – 28, 2012)

S = strategy
xxxxxxxxxxxx = trade closed

Sept. 21, 2012 – Friday

S1. 720/725 debit call spread

  • 1 x Long call 720
  • 1 x Short call 725

S2. 670/675 credit put spread

  • 1 x Long put 670
  • 1 x Short put 675

Sept. 24, 2012 – Monday

S2. Move the 670 long leg to 665

  • 1 x Short put 675
  • 1 x Long put 670
  • 1 x Long put 665

S3. Enter 700 long call and will later turn into 705 short as a debit spread

  • 1 x Long call 700 ($3.55)

S3. Short the 705 call and turn the strategy into a debit spread

  • 1 x Long call 700 ($3.55)
  • 1 x Short call 705

S1. Turn the 720/725 debit call spread into 715/720 credit spread

  • 1 x Short call 715
  • 1 x Long call 720
  • 1 x Short call 725

Potential Trades for today

If AAPL goes below 687.50 (a 15 min candle close), buy the 680 put and turn S1 into a ½ open butterfly.

If we see strength after we entered into the 680 put, then we take the 1x loss and close the butterfly.

S2. Add the 680 long leg to the credit spread and turn it into an ½ open body weird looking butterfly

  • 1 x Long put 680
  • 1 x Short put 675
  • 1 x Long put 665

S2. Turn into a full butterfly

  • 1 x Long put 680
  • 2 x Short put 675
  • 1 x Long put 665

S3. Turn into a full butterfly

  • 1 x Long call 700
  • 2 x Short call 705
  • 1 x Long call 710

Sept. 25, 2012 – Tuesday

S4. SPY debit call spread

  • 1 x Long call 147 @ 26c (get this leg first)
  • 1 x Short call 147.5 (get this at the EOD)

S5. SPY credit put spread (13c)

  • 1 x Short put 145.5
  • 1 x Long put 145

S4. Due to the market drop, turn the SPY instead into an inverse butterfly

  • 1 x Short 146.5
  • 2 x Long call 147
  • 1 x Short 147.5

S1. Roll down the 715/720 credit spread to 705/710 credit call spread

  • 1 x Short call 705
  • 1 x Long call 710

S5. Turn the SPY credit spread into a unbalanced butterfly

  • 1 x Long put 145
  • 1 x Short put 145.5
  • ½ x Long put 146

S3. Turn 705 call butterfly into a credit spread

  • 2 x Short call 705
  • 2 x Long call 710

S2. Open ½ put butterfly

  • 1 x Long put 680
  • 1 x Short put 675
  • 1 x Long put 665

S2. Close the put butterfly

  • 1 x Long put 680
  • 2 x Short put 675
  • 1 x Long put 665

S5. Turn the SPY unbalanced butterfly into a full butterfly

  • 1 x Long put 145
  • 2 x Short put 145.5
  • 1 x Long put 146

Sept. 26, 2012 – Wednesday

S6. Enter a new debit put spread ($0.95- $1.05)

  • 1 x Long put 655
  • 1 x Short put 650

S6. Enter into a full butterfly

  • 1 x Long put 655
  • 2 x Short put 650
  • 1 x Long put 645

——————————————————–

GOOG Trades (Frank and others are in these, but MM ain’t because he is away)

FS denotes Frank’s strategy

FS1. Enter into debit spread (50c)

  • 1 x Long put 735
  • 1 x Short put 730

FS2. Enter into credit spread (70c)

  • 1 x Long put 770
  • 1 x Short put 765

————————————————————

Sept. 27, 2012 – Thursday

S7. Enter into a new put credit spread

  • 1 x Long put 670 ($1.55)
  • 1 x short put 665 (get this later)

Possible Strategy if it drops intraday

Step 1) $670 Long Puts which we’ve done

Step 2 ) was to short $665 Puts, but to do this we need to close the existing long $665 Puts (from S2) & replace it with long $670 puts. So our $680/675/665 butterfly becomes a $680/675/670 Butterfly into tomorrow

Step 3) is to butterfly the new $670/$665 (S7) with a $660 long and double the short of the $665 .. so by end of day would be 2 butterflies $675 and $665.. but the $670 wings will be shared

Step 4) Selling the 680 long put and buy the 670 put and turn the 680/675/670 butterfly into a credit spread (bullish bias going into tomorrow).

So at the end of the day, if it drops, you should have 1 CS sharing the same leg with a BF:

  • 1 x long put 660
  • 2 x short put 665
  • 3 x long put 670
  • 2 x short put 675

S7. Turn the credit spread into a butterfly

  • 1 x Long put 670
  • 2 x short put 665
  • 1 x Long put 660

S2. Move the lower long leg of the 675 put butterfly to 670 and turn the butterfly into a credit spread

  • 1 x Long put 680
  • 2 x Short put 675
  • 1 x Long put 665
  • 1 x Long put 670

and then

  • 1 x Long put 680
  • 2 x Short put 675
  • 2 x Long put 670

S2.Turn the credit spread back into a butterfly

  • 1 x Long put 680
  • 2 x Short put 675
  • 1 x Long put 670

Sept. 28, 2012 – Friday

S2.Turn the butterfly into a credit spread

  • 1 x Long put 680
  • 2 x Short put 675
  • 2 x Long put 670

S8.Enter into a new call credit spread (same contract size with the S2)

  • 2 x Short call 675
  • 2 x Long call 680

S8.Take profit!~

  • 2 x Short call 675
  • 2 x Long call 680

S9.Enter into a 675 leg long

  • 2 x Long call 675

S9.Take profit!

  • 2 x Long call 675

S10.Enter into another new call credit spread (same contract size with the S2)

  1. 2 x Short call 675
  2. 2 x Long call 680

S10.Take profit!

  • 2 x Short call 675
  • 2 x Long call 680

S2. closed this trade with profit

  • 2 x Short put 675
  • 2 x Long put 670

 

 

As you can see the trades are complex and require you to be very attentive.  If you have  a full-time job, or you can’t be at the computer from open to close of the market; this is not a service for you.

Don’t waste your time or ours unless you are committed to changing your trading and learning how this is done 110%.

 

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