$AAPL short put entry

3 dec/4dec - the dec6 265 short call at $3.15 from 22nov... closed that at .44 on 3 dec and resold it at .80 today 2 days till opex. I know its just a few bucks but its some gas money. Sold the dec13 265 short calls at $2.35 for the IRA (35 delta). best case stock moves up a bit and I roll the weekly 265 to next week for credit. (still holding the Dec13 257.50 short puts) to back into a short strangle. so $2.50+ in profit on the short call, lowers the cost basis of the DITM call



nov22 update: on top of the long deep in the money LEAP call and the 257.50 puts I sold below I sold the dec6 265 call, 14days out and 41delta. sold for $3.15. the premium seemed a bit higher than recent. thought process was as such: obviously stock cant be above 265(the short call) and below 257.50 (the short puts) at same time so at least one of them will be a winner. essentially turned this position into a 257.50/265 strangle. I intentionally chose the same opex as the short puts.

at opex the following scenarios:
1- stock is below 257.50(255.40 effective), the short call expires at max profit, and I roll out the short puts. further subtract out the call premium gives me an effective price of 252.25.
2- stock is above 265 (268.15effective), the puts expire at max profit, my LEAP gains in value, and I close out/ roll out the short call
3-stock is between 257-265, both puts and calls expire at max profit for total gain of $5.25(short put and short call premiums added together)

sentiment on CNBC still is leaning cautious expecting the eventual correction, so I picked the first out of the money short call strike of 265 to get more premium if the correction occurs and went to the second week out vs the next weekly. if you have the thesis of "im already long and would like to add to the long position and generate some income while waiting to add" then this works for you. good to use if you start with a half position at some point and are willing to add more later. my "long" position is the existing Jan2021/Jan2022 deep in the money calls. you could do same thing if you were long the stock instead of the LEAPs




Nov 20- sold some cash secured puts today in $AAPL, and of course 4 minutes after fill the news about possible phase 1 trade deal maybe being delayed comes out so could have filled at lower strike of 50%higher premium. IV on the stock is not much so not much premium to be had without going out to longer dated strikes. again rule number one is that I only sell puts in stocks im ok owning if I get forced to buy the stock. so today with stock near 263ish

Sold dec6 257.50 puts at $2.10, delta 29, IV21 (green arrow)

we are all drawing the same lines on the chart and see a possible trend break coming. I have existing diagonal spreads on AAPL as well. 16days till opex on this sale, effective price if put the stock would be $255.40 which is near the trendline support.

if stock pops for some reason next few days and I get to 50% of max profit I will take profits and await the next set up.since I have diagonal spreads as well, im really selling strangles (selling upside short calls, selling downside short puts). having the deep in the money call keeps me from having undefined upside risk.