EL TRADES OPTIONS

This blog will show my longer term Swing trades using OPTIONS. I use specific income producing option strategies with a DIRECTIONAL BIAS. Having a directional bias is critical in earning more, even from what are generally called income trades such as butterflies and condors. The aim of my strategies is to give me more than a 66% edge and to provide a greater than 80% win rate within that edge. The blog shows you the trades I make and how I manage them. For my directional bias, I use the same EL methodology as I employ in my day trading that you have seen for years in the original ElectronicLocal blog. Read the disclaimer.

Thursday, October 11, 2012

AAPL Trade

Just before the close I added an AAPL Ratio Butterfly. I believe that there is not much risk on the downside. The RB is designed to be profitable above 575. I don't expect it to go in that direction and am rather looking to harvest profits as we hit first 10% and then 15% on a journey upward. I love butterflies. They can be structured to fit a scenario while at the same time giving enough protection when my view is wrong, mostly still making a profit.


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