11/13/2021 Plan:
This week we look at Apple (Ticker: AAPL)
11/13/2021 Plan (continued):
- AAPL – Sell the Dec 17 140/135 put spreads for 0.46 OR
- AAPL – Sell the Dec 23 140/135 put spreads for 0.54
- Prices are as of market close 11/12/2021, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
11/13/2021 Commentary:
The world’s favorite fruit company, Apple, is past earnings yet the Implied volatility is still well above the realized. We sell a put spread with the assumption AAPL won’t drop more than $10 in the next several weeks.
For some bonus trade ideas, the INTC Dec 17 47.5/45 looks pretty good as a bit of a repeat trade. I’m also looking to sell cash secured puts in GILD, MET, ROST, and a few others.
Feel free to Reach out with questions on this or anything else!
11/15/2021 Entry:
Sold AAPL 12/17/2021 140/135 put spreads for 0.46. INTC 47.5/45 Dec 17 available for 0.28
11/21/2021 Update:
The AAPL put spreads performed very well and are now worth 0.08 or 0.09. Rumors of AAPL entering the auto market gave a lift to the shares. We still have almost 4 weeks before the expire, so if you can take them off cheaply, I’d suggest booking the win and reallocating capital.
We are down a bit on the INTC put spreads. With lots of time, no planned action.
11/27/2021 Update:
If you didn’t take off the AAPL put spreads, they are still profitable, but not by as much as Vol has increased in the market (including AAPL). At this point, we hold on the position to let decay do its job.
On the INTC put spreads we also continue to hold as we’re still above the short strike and still have 3 weeks.
12/5/2021 Update:
The AAPL put spreads have another couple weeks and are down to 0.14. The big increase in volatility across the market has kept these puts “juiced”. As AAPL is trading near $162 we have quite a bit of room above our short strike of 140. Can certainly book the win now, I’ll plan to leave them on for now, looking to take them off for ~0.05 if/when vol in the market recedes.
The INTC put spreads are down some, but no change is planned for this week. As with most positions, the increase in implied volatility will increase the price of options (Vega). This means that even if prices stay the same, we may not see much decay. In this case INTC actually went up a bit since last Friday, but taking a look at implied volatility, INTC is up 6%!
12/12/2021 Update/Close:
Consistent with the update last week, I closed out the AAPL put spreads for 0.02. With the huge move up recently in AAPL, these are still quite safe if you did not close them and they should expire worthless as they are almost $40 out of the money. Another solid win as we near the end of 2021.
The INTC performed very well this week and could be taken off for 0.04. Close it out if you haven’t already as INTC has been very volatile recently and you don’t want to turn a solid winner into a loser.
