9/18/2022 Plan:
This week we look at a way to play two of the big names – Apple (Ticker: AAPL) and Facebook, er… “Meta” (Ticker: META)
9/18/2022 Plan (continued):
- AAPL – Sell Oct 7 135/130 put spreads for 0.54
- META – Sell Oct 14 125/120 put spreads for 0.54
- Prices are as of market close 9/16/2022, 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
9/18/2022 Commentary:
A couple put spreads to choose from (or do both, depending on your account size) this week.
We recently sold a call spread in AAPL, a bearish play. This week we look at a bullish play with AAPL quite a bit lower than it was previously. AAPL has sold off a lot and could certainly go further. If the market is lower tomorrow, I’d try to fill the 130/125 instead.
META is a riskier play. They make a lot of money, even with their increased investments in metaverse plays. The stock is getting cheaper. Could it fall another $20? Sure can. I consider this the riskier of the two trades.
Feel free to Reach out with questions on this or anything else!
9/19/2022 Entry:
Sold Oct 21 135/130 put spreads in AAPL for 0.55. Sold Oct 14 125/120 put spreads in META for 0.48. I Prefer the Apple trade but have both on.
9/24/2022 Update:
The AAPL put spreads are worth 0.58, so we’re down 0.03 on each spread. I will continue to hold these.
If you took the META trade, those are down a bit. I’d still leave those alone given how much time they have.
10/9/2022 Update:
We’re down some on the AAPL put spreads, but with 2 weeks to go, I’m leaving it alone. We have about $5 of buffer between the stock price and the short strike. I’d actually add shares if AAPL closes between the strikes.
The META put spreads expire this week. We’re down some, but if META doesn’t drop $8+ this week, we’ll bank the full win. Keep an eye on it and look to close Thursday or Friday.
10/16/2022 Update:
The AAPL put spreads expire this week. Similar to HD, we’re looking to hold on and bank a winner. I would consider adding shares if AAPL is between the strikes as mentioned last week. Happy to have it expire worthless of course and clear the risk and bank the profit.
META made it interesting, but the put spreads did expire worthless allowing us to add $48 of profit per put spread sold.
10/23/2022 Close:
The AAPL put spreads expired worthless on Friday. Each put spread sold generated $55 of profit. Apple has earnings this week, so I would avoid adding another trade until that announcement is past.
