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Bull Put Spreads in AAPL

Home › Forums › Swing Trades › Bull Put Spreads in AAPL

  • This topic has 6 replies, 2 voices, and was last updated 7 years, 8 months ago by Christopher ODonnell.
Viewing 7 posts - 1 through 7 (of 7 total)
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  • September 23, 2014 at 8:39 am #2388
    Steven Place
    Keymaster

    AAPL is in a sloppy continuation pattern, but while the rest of the market is weak it stubbornly stays above 100. This is good relative strength and points to an impending breakout.

    aapl

    Because it’s “sloppy” and breakouts have had a higher failure rate, I’m going to pick up bull put spreads.

    I was going to go with Oct options but those are too close and don’t afford me good risk reward. So I’m going to go to November with the understanding that this has earnings with it, and I will exit before that time.

    Sell to open HALF SIZE AAPL Nov 95/90 bull put spreads for 0.95

    ADD to the trade at 1.25

    BUY TO CLOSE at 0.40 and try to REOPEN at 0.95

    September 23, 2014 at 10:55 am #2394
    Christopher ODonnell
    Member

    Dear Steve,

    What is meant by the term “Half Size” in the description of your trade?

    Regards,
    Christopher

    September 25, 2014 at 8:45 am #2393
    Steven Place
    Keymaster

    Chris-

    It means don’t put on a full size position. This is so we can add to the trade if AAPL pulls back a bit more.

    September 25, 2014 at 10:45 am #2392
    Steven Place
    Keymaster

    Adding 2nd round here:

    Sell to open AAPL 95/90 bull put spread at 1.47

    Buy to close this half at 1.00

    September 30, 2014 at 8:33 am #2391
    Steven Place
    Keymaster

    AAPL gapping up nicely here, going to close out that 2nd half at 0.95.

    September 30, 2014 at 8:34 am #2390
    Steven Place
    Keymaster

    Will resell that half at 1.50 if we see another pullback.

    October 20, 2014 at 2:06 pm #2389
    Steven Place
    Keymaster

    I never added that second round at 1.50, but am going to close out the first half as we are heading into earnings:

    Buy to close AAPL Nov 95/90 bull put spread @0.98

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Viewing 7 posts - 1 through 7 (of 7 total)
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