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Home › Forums › Open Trades › Scaling Calendar in AAPL
Setup: Scaling Calendar in AAPL
Price: 132
VXAPL: 17
This is a textbook calendar setup. The stock gapped up hard on earnings, pulled back, and is now making a new higher high into some resistance levels.
On top of that, the implied volatility for AAPL is down in the floor… all the way at 17%.
Aside from the holiday season in 2016, that’s the lowest vol readings we’ve seen in 5 years.
So here’s the trade setup:
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STO | AAPL | 17 Mar 17 | 130 | Put |
BTO | AAPL | 21 Apr 17 | 130 | Put |
Total Debit: | 1.11 |
As AAPL continues to squeeze higher, we’ll add the 135 put calendar. If that happens quickly, then the odds of reversion in AAPL are quite high and things should go sideways as we profit.
Hi Steve, I added the 135 calendars today at 1.33. When are you planning to add the 135’s?
Thanks,
Dale