Wednesday, February 10, 2016

AAPL 2016 Update #72

AAPL is continuing to bounce around in what is looking like a channel. The price action today extended a little higher in a down market. This is showing relative strength.  Because of this relative strength I am going to roll the short call up and out in time a little - increasing the expiration to 30d.

I do not want to out farther than 30-35d as anything further out, time decay is not being maximized. With the extra duration I can roll up a strike for no debit.

+8c Feb 26' 93 Call @ 3.30
-8c Mar 11' 94.5 Call @ 3.30
Net debit: 0.00/c

This trade costs nothing to roll up and can be done for just commisions.

If the price action changes, I will readjust hoping to capture premium out of the short call.

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