Monday, August 03, 2015

AAPL - Update #20 (Stock Purchase)

Aug 3

Analysis

AAPL is selling off substantially and the hedges can be rolled out and purchase more stock. The stock is down nearly 3pts and closed at 118.44. I am going to capitalize on this large move, just one day after the rolling the hedges on Friday.

I am thinking that there is going to be further weakness in the market, I am going to continue a tight hedge on this position with a very short expiration.

Trades

Part 1. Close existing hedges and purchase stock

+6c Aug 7' 122 Call @ 0.22

- 6c Aug 7' 118 Call @ 2.36
Net Credit (1.10 - 0.22) + (2.36 - 0.93) = 2.31/c

Purchase 11 shrs AAPL @ 118.17


The position is now long 685 shares of AAPL, 85 of which have been bought and paid for by the movement in the market. Entry debit is 78 237


Part 2. New hedge with 4 days to expiration


-6c Aug 7' 119 Call @ 0.87
+6c Aug 7' 115 Put @ 0.73

Net Credit 0.87 - 0.73 = 0.14/c

-End

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