Thursday, December 03, 2015

AAPL Update #50 (Stock Purchase)

AAPL and markets sold off on Thursday - one day before expiration. The DOW dropped 252 pts and AAPL closed at 115.17.  This has been a slow steady decline for AAPL giving up nearly 4pts this week. Price declined below 115 and is showing a large daily wick on the candlestick. There is a probability that price has found some demand.

AAPL is probably getting close to bottoming out as its coming into a wide daily demand zone. However it may continue to drop, bounce a bit, or remain flat.

I have the 110 put expiring next week as floor in case the price gives way, but its currently trading at 13 delta and volatility is not showing much signs of spiking up. Fear has not returned to the market.

I am going to take advantage of the weakness and roll down the short call again to the 115 strike. This is an aggressive move as the stock may be getting ready to rebound out of the daily demand area. The order is being placed end of day for the Friday's market open.

The short call has 2 weeks to expiry so I still have plenty of time to roll or wait for further price action.

Trades

+7c Dec 18' 117 Call @ 1.38
-7c Dec 18' 115 Call @ 2.33
Net credit 0.95/c

Purchase stock
+5shrs AAPL @ 115.45

Total shares in the portfolio is now 749. 

10 shares of stock have been purchased valued around $1200