Thursday, May 12, 2016

AAPL 2016 Update #89 (Stock Purchase)

May 4

AAPL appears to maybe bouncing or finding support. I am going be rolling out the short calls expiring in two days further into time. 

I am also going to be selling out the put which is expiring in two days and returning the position into a covered call.

This trade will cost a little more (0.09/c) but in case the stock turns and runs to the upside I want a little more room. Time to expiration is still very short only 22-25 days.

The stock is also going to go ex-dividend and the calls expiring this week are slightly in the money and time value has all but disappeared. IB is warning that there is a chance of early exercise. 

This means I must move the short positions out in time to avoid the stock position being sold.

Dividend payout will be on May 12th and today is the last day to be long the stock.

Trades

+8c May W1 93.5 Call @ 1.73
-8c May W3 95 Call @ 1.64

-8c May W1 92.5 Put @ 0.14
Net debit: 0.09/c

May 6 (Stock purchase)

AAPL is again trading weak. I am going to roll the calls down and purchase more stock.

Trades
+8c May W3 95 Call @
-8c May 92.5 Call @
Net credit: 1.02/c

Purchase stock
+9 shares AAPL @ 92.57

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