Monday, August 03, 2015

AAPL - Update #19

Jul 31

Analysis

Expiration day and AAPL closed at 121.30. The Jul 31' 125 call is expiring and needs to be rolled and the Jul 31' 115 Put is expiring worthless. AAPL has been in a downtrend since earnings, so I have elected to tighten up the hedge and roll it forward only 1 week. I hope to capture some downside movement and with the short duration have lots of gamma to act on the hedge.

Trades

Part 1.
Close existing short call hedge
+6/c Jul 31' 125 call @ 0.01
-6/c Jul 31' 115 Put @ 0.00 (expire worthless)

Part 2.
Roll hedge down and out 1 week in time
-6/c Aug 7' 122 Call @ 1.11
+6/c Aug 7' 119 Put @  0.93

Net credit for roll:
1.11/c - 0.01/c - 0.93/c = +0.17/c

Because of the credit on this roll, the entry debit on the position has dropped slightly to 78 138

-End

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