This year no calls or puts.
Shareholders if you sold a Jan 2015 call and it has fallen, close it out and sell a Jan 2016 covered call for $60-....
Too long, we talked up AAPL only for the conference calls to knock it down. This time, I want AAPL to grow into the pre-sold valuation.
we here at FunnieBucket first bought AAPL in 1984, we felt the company was striving for innovation and would be ahead of all other companies with whatever they produced, turns out after waiting a long time our portfolio turned from rags to riches...
we continue to ask ourselves during some cycles of non-innovation if AAPL will still be doing it's same methods and prove their philosophy to work once again in the long-term... although we reduced our shares to only 33% of our on e enormous holding! we still do not want to surrender all our shares because we are not as good as AAPL as to know exactly where and when their new products of innovation will come to market! we don't know if it will happen in 1 year or 3 years or 5 years, but we do know it will happen and we feel the company stock price will outperform most other investment options available in the stock market during the longer-time-frames...
...but what do we know, we are just the FunnieBucket
I showed last night how this did work...Jan 2015 $550 calls once $55 are now $26
the Jan 2016 Jan $550 calls once $65 are now $48...
If these were sold ...nice profits or lowered your purchase price nicely..You have a paper loss on stock but a real time gain
This is the play...sale of pre-pocket premium on covered calls...If the stock goes down or up you can trade down or up.
An example of this was FB when it was $47...I posted "Sell Jan calls and buy July puts". It fell to $40- then I posted "take profits" anyone who listened made money on both the sale of the calls and purchase on the puts..it is now $46-..that was a great see-saw action....worked like a swiss clock
Why buy calls or puts?...keep all the money in your pocket.
Yes, I can sit here and show very tight option plays...But not this time. I want to see the stock action without any option plays.
Have no doubt what so ever that option action directs the stock action.
Actually part of that is pre-selling ahead of sales of 2017 LEAPs, so its SORT of normal, its just like a competition to escape the position, so as to the option value makes it a better buy right now ahead of the 2017 releases with still over a year and a half on the trigger. I would buy $600's, but $500's at this price are silly cheap for what you're getting. They'll at least break even, and may do better.
From Jan to now, AAPL has see-sawed three times and the Jan 2015 $550 calls as well.Players of this see-saw have already pocketed $45+ cash.
Trends only come in three's...this means AAPL will break out or break down..I do not know.
Sucks that I missed the last seesaw. . . . I really didn't think it would break down that hard that fast, so I didn't even sell my swing position.
The other two seesaws I made alittle bank on.