My post today is a continuation of Jan 2016.
Of course that is a continuation of three years ago.
Unlike Cramer who starts each day like the previous one did not exist I try to do Recaps...when things go astray iike last year I introduce a solution like the Renoir Strategy then
July 17 130.00 calls AAPL150717C00130000 0.48
Thursday trade: 13204
OPen interest : 171037 = 17,103,700 million shares
If you sold the Jan 2016 $130 calls for $11+...already a $5 profit on paper
Now you can buy July 17 $130 calls for less than fifty cents.
You have 100% upside for July 15 earnings and $11 downside hedge
once again, you buy the lower strike price at the ask
sell the higher strike price at the bid....
Of course, the market maker tries to cheat you but since this is only a survey...go ahead and use their numbers
If the number is above $3.80 this is showing relatively good support.
spend some free time looking at these compared to the Jan 2016 call spreads, as well.
Do not take a position yet...not because of volatility but time
WE are two for two this year.
Will be go three for three or will it be like MEATLOAF sings.."Two out of three ain't bad!"
Stay away from gold
Call Spread is when you buy a lower strike price then sell a higher strike price . Then you subtract that from strike price spread, in this case $10 to determine potential profit.
Then you take that profit over cost.
Here is an example:
$110 calls cost $27.45
$120 calls can be sold for $19
Difference of $8.45
Spread is $10 ...so $1.55 potential profit...
Return: $1.55/$8.45 = 28%
If the see-saw has been to $130....
Dow Futruers are UP 150 +