11/27/2022 Plan:
This week we go to the world’s favorite fruit company, Apple (Ticker: AAPL)
11/27/2022 Plan (continued):
- AAPL – Sell Dec 30 135 put for 1.54 OR
- AAPL – Sell Dec 30 132/127 put spread for 0.45
- Prices are as of market close 11/25/2022, 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
11/27/2022 Commentary:
Two bullish approaches in Apple this week, generally I’d recommend one or the other. The put sale gets one in to Apple at an equivalent of $133.46 per share. Apple hasn’t traded there since the low back in the June timeframe. The put spread is a trade for those that Don’t want AAPL shares. One can play with the strikes a bit to tweak the risk/reward. The 135/130 going for 0.60 is a fine choice. I lean towards taking a bit less premium for a higher probability win given I’m not at the computer all day to make adjustments.
Feel free to Reach out with questions on this or anything else!
11/28/2022 Entry:
Sold Dec 30 AAPL 130/125 put spread for 0.50. With the sell off, we selected lower strikes than planned. For those looking to sell cash secured puts, this is a decent opportunity as well.
12/4/2022 Update:
A nice move in AAPL and our put spreads are already down to 0.23 at the midpoint. There are still 4 weeks left in this trade and this has performed well after just one week. One could book the quick win and re-allocate to other trades. I’ll keep it on (I’m also short 130 puts) for at least another week.
12/11/2022 Update:
With a sell-off in AAPL, our put spreads are worth 0.47, which is a small winner so far. There are still 3 weeks left in the trade and I intend to hold longer with no trade/adjustment planned for this week. I’m also short 130 puts and would be fine taking shares at that level.
12/18/2022 Update:
With the Very large sell-off in AAPL last week, the put spreads are worth 0.92 for a small loser. You can close and take the small loss or keep it open with the assumption that AAPL holds the 130 level. I’m doing the latter. I’m still happy to add shares at the 130 level.
12/24/2022 Update:
The AAPL spreads are worth 0.96. They expire this week. This trade now has a lot of gamma and one has a few choices – close for a small loss now, let it ride to try and close for break even or a winner (with the risk it turns into a big loss), or try and roll to buy more time. With prices as of the close of Friday, one could pick up another $43 per put spread by just rolling it one week. Personally, I intend to leave it on until later in the week with the thought that this week *should* be quiet between the Christmas holiday and New Years. If I need to roll late in the week, I will. An exception is if AAPL takes off to the upside, I may try to close cheaply. If you are sized too big, take it off early in the week to minimize your exposure and check your sizing in the future (please).
