Tuesday, August 21, 2012

$AAPL Bull Put Spreads On Today's Pullback

9/19/12
Closing these for almost full profit.  No sense in risking it.  Total profit of $435 or $0.87 per lot.

Trade:
BTC Sept 12 AAPL 625/620 bull put spreads for ($0.05-$0.02) x 100 x 5 spreads = $15 debit vs $275 credit = $260 profit 

8/27/12
Rolling up these put spreads with AAPL up big today on their Samsung lawsuit.  Net credit of $0.35 per lot.

Currently an 86% probability of max profit on this adjustment.  Still not planning on condoring these.

Trade:
BTC Sept 12 AAPL 600/595 bull put spreads for ($1.58-$1.38) x 100 x 5 spreads = $100 paid vs. $275  received = $175 profit
Sold Sept 12 AAPL 625/620 bull put spreads for ($3.55-$3.00) x 100 x 5 spreads = $275 credit received


8/21/12
Apple was due for a pullback after a massive run up post-ER.  Got a bit of that today.  Technically, Stochastics are still overbought but price is back inside the Bollinger band which is opening up for higher prices.  Keeping the short strike under the 20- and 50-day averages, which are also curling back up.

Currently a 77% probability of max profit on this trade.  Not planning on condoring these spreads now that AAPL has broken out to new all-time highs, as there is no overhead resistance.

Trade:
Sold Sept 12 AAPL 600/595 bull put spreads for ($3.60-$3.05) x 100 x 5 spreads = $275 credit received


3 comments:

  1. Thanks for posting all your trades and how you think about them. One question - how do you come up with the probability of max profit?

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    Replies
    1. Thanks for the kind words. Your broker should have a tool that calculates that for you. It determines what the probability is that the stock will close above/below the short strike on opex.

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