Saturday, September 10, 2016

AAPl-2 Hedged Trade #6

Sep 8

Volatility is coming back into the market. This was a significant candle in the price action today. A new supply area is forming from here and I expect further downside.

I am going to aggressively adjust the short call down, capture some value and purchase more stock.

I also may start to think about purchasing a put to fully protect the downside position. Remember, the short call carries negative deltas (making money when the stock falls), but the short call protection fades if the price begins move in bigger units.

Trade

+7c Oct 7 108 Call @ 1.387
-7c Oct 7 106 Call @ 2.247
Net credit: 0.86/c

+5 shrs AAPL @ 106.18

Net credit: $602
Total commissions: $11.99

Breakeven is at 102.56, 5 extra shares of stock purchased from the stock movement.

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