"We did what we said we would do. We said the revenues would be between $50 and $53, we came in at $50.6. We said margins would be 39% to 39.5% — we came in at 39.4%," Cook said.
IF you played along.
Have a nice day
these are now, $7.
When the Jan 2019 calls are available, WE will close the 2018 trade out for a $10 gross profit - cost of Jan 27 call for $3.65 then sell the Jan 2019 calls...why?
WE take what the market offers!
as were Jan 2017 $85 puts were sold for $10. - $10.75 last Aug 24. These were closed out for pennies on the dollar.
WHen you sell a $85 put for $10...you are agreeing to buy AAPL at $75 or keep the cash which is tax deferred until trade is closed
Stock price is irrelevant.
We invest for the long range
I suggested this to an uncle...he said but that is taxable as ordinary income not capital gains.
I said, yes but you can delay taxes for years...If the stock runs, you have a paper tax loss but not a real cash loss.
What is rather simple to one seems do difficult to others to comprehend. a real mystery
!, First off, it puts tax deferred cash in your pockets....Today, what is the cost of a short term loan?
2. It has tax advantages! you do not pay taxes until the trade is closed out.
IF the stock runs past the "giveaway", you buy back the option as a paper loss but sell a higher strike price at a later date for a higher giveaway and more tax deferred cash...Once the money is in your pockets, leave it there!
3. Sale of all puts must always be hedged...it is imperative to buy a hedge put at Strike price - sale of call and/or put = strike price for hedge put.
This strategy of selling covered calls and/or puts works using TIME as a weapon not stock action. A prime example of this was the effect on AAPL stock price action recently on the Jan 2018 options ...the call and put reacted identically inversely...
the Sale of Jan 2017 covered calls was rolled into selling Jan 2018 covered call.
Soon, you can close out the sale of the jan 2018 covered calls for a $10 profit then sell the Jan 2019 calls for another $17+
TAX DEFERRED CASH...a NO INTEREST CASH LOAN.
you either pocket the $10+ or must buy the stock at $75 which is $20/$95 = 21% discount to market.
In Aug 14, the Jan 2017 $85 puts were sold for $10 = $10.75 for a very nice profit,
AAPL beat iPhone sales estimates and software sales. Market this time concentrated on the forest while in the past they concentrated on the trees....just an excuse to kill call premium
I did suggest "do not play options" that we would be counter punchers the following day.
If you own this stock, you can make money when it goes up or down...
I recap old suggestions as a learning lesson.
The Last two years, the return on AAPL has been 15 to 30% each year.
Sale of covered calls only get closed when later dated ones are available IF it makes sense.
Sale of puts are suggested to be closed out when the premium falls 50%. Then you can resell them again, if the market allows it
If you can not comprehend, pass on the ideas
Friday, once again, as posted weeks ago, "out of the money" puts were sold for $10+.
you either keep the 10% or buy the stock at a 20% discount to market....RENOIR!
today, AAPl is at $105-, the Jan 2018 $105 calls sell for $8....
market price premium has dropped $9. If you sold these , do not close this trade...cash is tax deferred and you are 100% hedged at this price.
While the Jan 2108 $105 put is now $21...Makes no sense in buying puts at 20% of present market price, Sucker's play!
on Friday Jan 2018 $85 puts were sold for $10...you either pocket the $10 or buy AAPL at $75...
previous two times, profits were $10 each..for $20.
Time will erode the recent puts as they did previous ones
these are now $7..
with the stock down, investor is still in the green, net cash. We will wait for the Jan 2019 calls then close these out and sell same or higher calls for $17+