Saturday, September 10, 2016

AAPL Update #92 (Trade Closing)

It's been awhile, but I am back posting. Although I have not posted, I have been trading. I am continuing to managed the covered call / collar position in AAPL, but I am also starting another project where I will be swing trading positions in the account also.

Nothing too large, small risk at first but using different time frames. I will be using stock at first and at some point will look to move to other, more leveraged assets like futures.

Some housekeeping going back to Jun - Aug.

AAPL moved bullish (upwards) in the past few months after it looked like was about to collapse, but continues to trade in a range. The next few items are the details about this trade and what I did with it in during mid summer.

Jun 3 - Trade

+8c Jun 03 90 Call +7.86
-8c Jul 08 90.5 Call -7.86
Net debit 0.00/c

The stock has moved upwards very quickly and the short call is deep in the money. At this point, going into the slower summer season, I am going to give it some time and see if retraces. While doing so, I am going to move the short strike up 0.5pts to repair a little more profit.

Volatility also collapsed so that means rolling strikes require more time. I could out very far in time, but I don't want to. I'm willing to wait another 30d for any retracements, if not. I will let this position expire and restart with a different number of shares.

Jul 8 - Trade

+8c Jul 08 90.5 Call +6.07
-8c Jul 29 91 Call -6.22
Net credit: 0.15/c

Purchase stock
+6 shrs AAPL @ 96.61

The position is now at break even again and I using some of the dividend money and credit available to purchase more stock.

Jul 27 - Trade

Earnings released this week. AAPL spiked higher.

AAPL is trading at 103. It has continued to move higher. The position is profitable at $881. Expiration is 2d away. The stock is continuing to move higher away the $90-$100 region. Volatility is also low and price is trending higher on the daily timeframe.

What I am seeing now is that the short calls are very deep in the money and the spreads are widening making it harder to trade these calls up to continue to capture more profit.

I have been only making one trade per month for the last three months (May - Jul) in an effort to see where AAPL would trade. For now we have uptrend and the deep in the money short call is holding back profit.

I am going to exit this position selling all shares via the options assignment. The account is carrying a total of 870 shares of stock. Today I am selling +70 shares to reduce the position to 800 and will let the short calls sell the rest on expiration in two days.

-70 shrs AAPL @ 103.62
Net credit: $7,253.40

Jul 29 - Trade (options assignment at end of day)

+8c Jul 29 91 Call @ 0.00
-800 shrs AAPL @ 91
Net credit: $72,800

Trade is closed for a net profit of $898.95

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