Reply To: Vol Buy In AAPL

[Steven Place]

AAPL has rallied up to 548, I’m going to consider this “close enough” to hedge off some of our gamma.

Here’s what to do.

You already have the AAPL 530 straddle on.

So first:

Sell to open Apr 560 Call for 3.90 or higher. (This call sale effectively spreads the 530 call we already have on)

Next:

Sell to open Apr 560/570 call spread (This reduces our delta even further.

Here’s our new risk profile:

If AAPL reverts then we will close out of these trades.