Thursday, September 17, 2015

AAPL Update #31 (Stock Purchase)

Sep 17

Analysis

After the Sep Fed meeting, the markets sold off at the end of the day, modestly.

AAPL finished down about 2%, just a couple of dollars. To take advantage of this move down, I am going to reverse the hedges slightly that were placed yesterday. That should yield enough cash to purchase a few more shares. There is a chance that AAPL could continue to move down, or it may bounce back up. 

Friday (today) is expiration. The hedges will have 14 days left on them.

Trades

Part 1 - Roll down the hedges

+7c Oct 2' 116 Call 1.39
-7c Oct 2' 115 Call 1.79
Net Credit: 0.40/c

-7c Oct 2' 108 Put 1.30
+7c Oct 2' 105 Put 0.82
Net Credit: 0.48/c

Total credits 0.88/c X 7c = 616

Part 2 - Stock purchase

4shrs X 112.80 = 451.20


-End