Monday, November 16, 2015

AAPL Update #44 (Stock Purchase)

Nov 13

Analysis

The market continued to drop this week and AAPL declined further closing around the 112 mark. Volatility has started to increase, but is not spiking much higher. This pullback seems very orderly and without much panic. 


Looking at the chart, AAPL is probably entering a daily demand zone where we should see some buyers start to come in. However, it is looking like it will finish off the week on a down note.


I am going to just rachet down the the collar a couple of strikes, pick up some premium and purchase more stock. I am going to be adding to the credits from earlier in the week and the dividend paid out on Nov 12 (Thu).

Trades

Part 1 - Roll down calls

+7c AAPL Nov 20' 118 Calls @ 0.32
-7c AAPL Nov 20' 116 Calls @ 0.76
Net credit: 0.44/c


Part 2 - Roll down puts

-7c AAPL Nov 20' 112 Puts @ 1.17
+7c AAPL Nov 20' 110 Puts @ 0.68
Net credit: 0.49/c

Total credits rolling down the collar: 0.93/c


Part 3 - Purchase stock
+12 shrs AAPL @ 113.27

Total number of shares in the portfolio is now: 733


This is just 3 shares below the point at which the stock was called away earlier in the month.

-End