Thursday, December 31, 2015

AAPL Update #57 (Stock Purchase)

End of year (2015) Update - Happy New Year!

AAPL has finished 2015 on a down year. Year-to-date the stock is down 3.76% or 4.12 points (Jan 1 - Dec 31 closing prices)

Fig 1. AAPL Breaking Daily Demand (DZ)

This year AAPL has lost money if you were long the stock the entire year. 

More importantly, AAPL has broken the daily demand zone (DZ) which I had already said had a weak reaction from it the previous day.

Price is now going to move until it encounters a significant demand area, found on a higher timeframe. That means AAPL next target is going to be at least 92 and probably lower into 83-85 area.  That will certainly be causing much panic among unhedged share owners.

With price hitting the 106 mark today, I have made one last trade for 2015 in the hedge account. And it creates a position that I started out with when I placed the collar on in February 2015.

The position is now a conversion where the long put and short call strike are the same -- providing 100 deltas offsetting the stock perfectly.  The position P/L is net +$4100 and the share inventory is now at 776. There is one week to go to expiration.

The stats page will be updated shortly.


Part 1 - Roll down the short call to 105
+7c Jan 8' 107 @ 0.94
-7c Jan 8' 105 @ 1.98
Net credit 1.04/c

Part 2 - Purchase stock
+7shrs AAPL @ 105.88

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