Friday, October 09, 2015

AAPL Update #35 (Expiration Friday)

Oct 8/9

Analysis

Expiration Friday is approaching.

AAPL seems to be weak compared to the overall market, but this is a bullish period for AAPL so I am going to be rolling the calls up and out a week to take advantage of the dip.

On any strength I will be buying puts to complete the hedge.

[Edit: By end of day, AAPL closed at 112.04, +2.09pts, a very bullish move higher]

Trades

Part 1 - Roll out the calls
+7c Oct 9' 111 Call @ 1.22
-7c Oct 16' 112 Call @ 0.72
Net credit: -0.50/c

Part 2 - Purchase new puts
+7c Oct 16' 105 Put @ 0.43
Net debit: +0.43

Net credit for hedge: -0.07/c

Existing puts are OTM and will be left to expire worthless on Oct 9' expiration.

-End