Monday, November 23, 2015

AAPL Update #47

Nov 20

Analysis

AAPL is within hitting distance of two supply areas on the daily chart. I have rolled up the short call for a small credit and out two more weeks in time. 

The last week in November to end of December is a fairly bullish time in the market historically and I want to position some upside potential in the collar.

I still have puts to expire this week, so technically I do have a collar on, but with the strikes in different time frames. I want to keep rolling up the short call and maintain its high delta and theta as hedge against the stock price.

The last time AAPL began a move higher, I let the stock get called away only to see it reverse back anyway. As this is a registered account, I cannot sell put spreads in a effort to recapture stock, I needed to purchase the shares back.

Supply is in the 120-124 broken in the two overlapping zones.

If the market does continue to move, I will be looking to roll calls up and out in time, adjusting the overall collar delta.

[Nov 25 Update]
As a check, the EM is in a range of 111 to 124 and the statistical optimal put strike for protection for Dec 11' expiration is 115. If the stock moves within this range, I will be adjusting collar strikes. Stock closed on Nov 25 just above 118.


Trade

+7c Nov 27' 117 Call @ 2.85
-7c Dec 11' 118 Call @ 3.22

+7c Dec 11' 110 Put @ 0.37

-End