Monday, November 16, 2015

AAPL Update #45

Nov 16

Analysis
With the aftershocks of the Paris attacks on Friday, the markets looked like they would be dropping hard out of the gate. The Sunday futures had the NASD down over 100pts.

During the morning, however, the futures recovered sharply. As indicated on Friday, AAPL is probably entering a daily demand zone. 

Out the gate, I am going to be selling the puts taking advantage of the volatility spike and the downward price move. AAPL is going to open around 110-111.

Trades

Part 1 - Close puts
-7c AAPL Nov 20' 110 Put @ 1.14
Net credit 1.14/c

Part 2 - Working order to close calls
+7c AAPL Nov 20' 116 Call @ 0.25

By the end of the day, the call order did not fill. 

AAPL rallied to close near 114. Selling out the puts right at the open was the correct thing to do for today. The market may now be starting to rebound or consolidate after finding demand. I am going to put in a order for the following day to roll the calls up and out 1 week in time. From that credit I will purchase some puts -- probably further OTM and purchase more stock.

-End