Dip Buy in AAPL

[Steven Place]

After a strong gap down, the stock has made new lower lows and is hitting it’s lower bollinger band. Everyone is talking about this obvious breakdown, and zerohedge just posted something about how obvious the breakdown is and how the trend is now clearly down.

This feels like a fade.

Here’s the trade to start, go in thirds:

Sell to open AAPL Sep 110/105 bull put spread @0.80, Close at .30

Add at 1.20, close at .80

Add at 1.70, close at 1.20

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[Steven Place]

I figured I was early on this.

Time to add another round of spreads.

Sell to open AAPL Sep 110/105 bull put spread @1.20, Close it at .80

Next add is at 1.70

[Steven Place]

Nice bounce in AAPL, time to exit our scale.

Buy to Close AAPL Sep 110/105 Bull Put Spread @0.80

That is ONLY for the add put on yesterday. The first round of spreads still stay on.

If the spread comes back to 1.20 we will re-enter.

[Steven Place]

The volatility in AAPL may give us a chance to re-add the second round:

Sell to open AAPL Sep 110/105 Bull Put Spread @1.20

The current mid is at 1.15 but if it sells off just a touch more we can re-enter.

[Steven Place]

I’m adding here at 1.30

[Steven Place]

Buying to close the add (again) for .80.

[Steven Place]

Ok after all this fancy footwork, AAPL is still weak.

Normally this is a place I’d say to add, but because the strikes of the spread are so close to the actual price of AAPL, we need to roll.

This will be a roll AND add.

1. Buy to Close AAPL Sep 110/105 Put Spread @1.95

2. Sell to Open 2x AAPL Oct 100/95 @0.90

This will stick us in the trade for longer, but it also increases our odds while keeping around the same amount of directional risk.

I’ve got room for one more add, and will do so at 1.50 (with intent to buy back at .90).

[Steven Place]

Bidding to Close Full Size @0.25

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