Saturday, October 20, 2012

$AAPL Nov credit put spread entry

20 oct - crazy month for AAPL , like i tweeted, i took the loss on the Oct credit put spread instead of rolling for the sake of rolling and having to signficantly increase the lot size.. instead i will use that buying power that would have been needed for that roll and reenter a new credit put spread at better strikes for november..yes, i know earnings are this week. premiums are juiced because of the recent down moves and i wanted to get in on that. sold the Nov 565/570 credit put spreads at $1.10 . the 570 is right at some support from last earnings and is below the 200day.. best case the stock rallies into the mini ipad release and/or earnings and i will be looking at condoring this position at least above the 50 day. depending where the stock is on day of earnings i will be selling some OTM weekly short calls to go against my 2015 LEAPS and likely use a portion of that income on some cheap put calenders or put flys. this spread was about a 75% probability of max profit at time of entry.. note: if the stock rallies decently into the ipad / earnings events i may just take profits too vs condoring .. will make judgement call based on stock price at that time.

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