Thursday, May 12, 2016

AAPL 2016 Update #91 (Stock Purchase)

Wow -- what a mess. 

AAPL is looking to break weekly demand and may in fact move even lower. Today's price action went quite deep in the weekly zone, which means it is pretty much now invalidated.

Today's engulfing candle is quite a move and indicates that there is still supply being formed and demand is going to be much lower yet.

I would like the stock to stabilize a little so I can get through an expiration cycle and be able to get a put in place. However, with today's move, I will be rolling down the calls and selling ATM calls to collect a larger premium.

Trades

+8c Jun W1 94 Call @
-8c Jun W1 90 Call @
Net debit: -1.50/c

And from this credit I will be purchasing stock

+14 shrs AAPL @ 90.22

Total shares in the position is now at a record: 864 shares. The stock price is also at a 2 year low.

Officially the position is now down money, about -1K if you include the remaining theta in the short calls that expire in 22 days.

Will the stock bounce a little or continue downwards? If this weekly zone fully breaks in the coming days, I will need to be more aggressive in hedging to the next demand level.

On the positive side, the dividend was released today so that makes up a little of it. I have not used that to purchase shares.

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