Tuesday, September 29, 2015

AAPL Update #33 (Stock Purchase)

Sep 30

Analysis

AAPL continued to fall today, closing down -3.38, even while the broader market was up.  This was after yesterday's decline of just over -2pts.

I had rolled the short call down this week already to 113, picking more shares in the process.  The short 113 call is now trading for about 0.25 a does not offer much more in protection. The long put position, gained a little value but not enough to warrant selling.

I am going to continue rolling down the call to the 110 strike and repeat the process from yesterday. This is an aggressive position, but the delta remaining on short call is down to -14 offering little protection. I am going to roll the call down to a -40 delta. The long put is gaining a little more, but still at about -20.

The new hedge will offer about -60 delta against the long stock position.

If the stock should rally in the next few days, I will roll up and out in time. Days to expiration is just 3.

With the additional stock purchased, the total shares is now up to 734. The current breakeven on the position is 106.33.

Trades

Part 1 - Roll down the short call to 110

+7c Oct 2' 113 Call @ 0.37
-7c Oct 2' 110 Call @ 1.54
Net Credit 1.19/c

Purchase shares
+8 shares @ 110.70


-End