AAPL Options Advise - Seriously Replys Only Please
Wait for the stock to put in a bottom and then sell to open the JAN 2015 put options some what below the bottom stock price put in by the stock. Only 2 things can happen the options you sold will go down in price as the stock price moves up and you can buy to close with a profit, or the stock will be put to you if the price drops to the strike price sold; at which time you have lowered your price point by the amount of premium paid to you. You will still collect the divy on the stock you hold while u wait for the stock to move up.
What kind of trade is this? If the stock is indeed falls, he would be forced to buy another 200 shs of AAPL on the naked puts? Can the op afford to buy another 200 shs? What if the 200 shs he got put to drops further? He's in a bigger hole! I had short puts @ 475, 470, 460, 465 for this friday. I closed out my position at a 8k loss because I didn't want to own AAPL with all the negative sentiment.
Op, either sell covered calls, knowing if AAPL pops beyond the call price, you won't partake beyond the strike price. Buy Puts, but it very expensive for ITM puts. Sit tight with your holding and wait it out. Close out your position and move on. I've been where you have been and don't envy where you are at. Good luck.