Tuesday, January 05, 2016

AAPL 2016 Update #58 (Stock Purchase)

AAPL has bounced around for the past two days, but closed today on the lows at 102.71

The previous hedge at 105 (a conversion) is profitable as the stock dropped below the 105 strike. This was rolled down and out in time to capture profit, purchase more stock, and maintain the hedge.

As in previous posts, the target price for AAPL is below 92. As it goes lower I will become more bullish at the lower levels. Until this level is hit or the chart shows different, I will be keeping the collar on as tight as possible.

I will be rolling the existing trade out 1 week in time and converting back into a traditional collar spread at 103 - 104.29


+7c Jan 8' 105 Call @ 0.50
-7c Jan 15' 104.29 Call @ 1.47
Net Credit 0.97/c

-7c Jan 8' 105 Put @ 2.56
+7c Jan 15' 103 Put @ 2.16
Net Credit 0.40/c

Total credit 1.37/c

+9shrs AAPL @ 102.85

Total shares in the account is 785

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