Tuesday, January 12, 2016

AAPL 2016 Update #62

AAPL appears to be finding some resistance just below the 100 price mark. It has had a range as much as $5 over the last few days -- testing into the 101 area but also failing to drop below the 95 mark.

With earnings coming up soon (2 weeks away), I want to begin moving the short calls away, but still keep them sold to collect premium.

The week of Jan 29' will have the highest volatility and the best opportunity to sell a higher strike.

However, there is one cycle in between I want to maintain selling premium, but also try and move the strike higher, loosening the collar.

Trades

+8c Jan 15' 100 Call @ 1.08
-8c Jan 22' 102 Call @  0.96
Net Debit:  0.12/c

I am gong to pay a little to move the strikes up 2pts (capturing another potential +1600) should the stock begin to run up a little before earnings. I could have done this for a net credit but not been able to gain an additional +2pts.

I will be waiting to see how the option pricing reacts during the week just before earnings to see whether the short calls should be bought in or be selling another strike.

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