Wednesday, April 4, 2012

Trade: Sold Apr AAPL 575/570 Credit Put Spreads

Got shaken out of this one today.  Closed the spreads out for a total profit of $104.  Stock has been all over the place the past 3 days and considering the short strike was tested yesterday, I'll gladly take the profits with only a few days until opex and max pain appears to be in the 535-600 range.  Better to take the risk off now and be happy taking money out of the market.

Bought AAPL Apr 12 put spreads for ($0.53-$0.38) x 100 x 4 spreads = $60 cost vs. $164 premium = $104 total profit

Sharp pullback in the market today after some weak numbers and concerns in Europe again.  Apple (AAPL) still holding the trendline, and I'm expecting a run up into earnings, which should be after April opex, but hasn't been confirmed yet.  Shooting against the choppiness around 600, the trendline shown in the chart, and the 20-day sma, which is the dotted Bollinger band centerline.

OptionsHouse puts the probability of max profit at 89.4% currently.

Sold AAPL Apr 12 575/570 put spreads for ($2.35-$1.94) x 100 x 4 spreads = $164 premium received

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