WE have seen this bear attack before. When AAPl fell from $600 to $385 on growth concerns only to run to $134 X7 = $838
Most made a lot of money playing that option see-saw as well. Many sold over priced puts and bought cheap calls. The trick is not to play near term options.
If you had sold near term puts close them out and sell later dated ones
that two trade play was good for all stocks.
Yes. many stocks ran and your stock was taken but you made money.
Any "conservative strategy" has its' limitations
Amazing thing is..?
Despite teh stock price being $107 or $130 the total cash generated is $18 - $20.
The only difference is the taxable/deferred tax split.
This now gives you a "giveaway" at $150 or a hedge down to $110
The trick here to make money is to sell over inflated puts out of the money. When you see heavy volume in these the BIG BOYS are ready for the "V" trade
130.00 AAPL160115C00130000 2.08 2.03 2.17
Contracts traded: 15,614 = 1, 561,400 shares X $10 = $15,614,000 to be exact
now $23 million.
Anyone who sold thee short..cover..
I never suggested to do that
Where have you been since Jan.. or last year.
Why did you buy at new 52 week high?
I only posted $136 as target?
Why did you not buy then sell a Jan 2016 or 2017 covered call for $10 - $12...? If so, you could had made my two trades and would have $18 to $20 cash in your pockets now
This is why HEDGE FUNDS kept this tock below $130
their new giveaway is $150
their hedge is $110.
They can walk the stock down or up with the luxury being cash flush
you get defensive.
Hold your shares but pocket tax deferred cash. This allows you to pre-pocket stock price gains.
Flip side of the coin is this is a hedge