Wednesday, July 11, 2012

max profit today on $AAPL July credit put spread entry

20 july  going to be another trade expiring at max profit today with stock near 606 now.
sell to open July 565/570 credit put spread at .42
expiring today at zero for $420 profit on 10 lot

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11july- per my previous posts about wanting to add credit put spreads to the ITM short calls i have, stock dropped a few bucks real quick and happened to be near computer when alerts went off. currently have some july 580short calls as part of diagonal spread.. so with stock near 600, was looking for credit spreads obviously at /below that 580short call strike, best case under the support line near 565, 2nd best under the 50day ...based on the premiums still left for july i went with the 565/570 credit put spread, Trademonster analyize tab shows that spread to be 82%probability of max profit at time of entry. this is a strategy based soley on that some short calls are ITM so there is a built in hedge.

sell to open July 565/570 credit put spread at .42

not much premium but wanted that probability to be above 80% .

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