Another example....close out all winning call option plays before earnings.
Go back by clicking onto my posting name and read messages weekend and Monday and Tuesday before earnings.
I do not delete posts.
If one thought growth was slowing and the stock price was going to fall, one would sell Jan 2017 covered calls for &16+ After closing out sale of Jan 2015 covered calls for a $5 to $7 profit ..?
I see I have 53 replies to my previous posts. I noticed one or two posts being "cherry picked" but it is an ILLUSION of what was said on total.
once again, the weekend on Sunday before earnings I posted..Close out all calls and sale of all puts before close on earnings.
the stock did bounce in a "V" to $127..the mean, a few days later.
I posted the night of earnings this would happen because of the "option see-saw". No one lost money
If you bought now and sold these at $16.50..
your money is locked up for 18 months but you will pocket the AAPL dividend and have $16.50 tax deferred cash per share cost free in your pockets.
You have $16.50 downside protection down to $105....
HOLD and sell a JAn 2016/@017 covered call for $10+.
Now maybe RENOIR?
For example the jan 2016 $40 calls sold for $9+...now they are $2.....the loss yesterday was covered by profit on sale fo Jan 2016 covered calls
Now the best play just may be sell a $25 or $30 put for BIG PREMIUM..?
Cost free cash is worth how much in this market? That needs to be factored into your return when looking at your investments
If you sold the Jan 2016 $130 alls for $10 - $12....these are now below $5.
If these are closed out, the profit now becomes taxable....if you then sell a Jan 2017 $130 call for $12.50...you keep the original tax deferred money in your pocket.
JAn 2017 35.00 TWTR170120C00035000 5.80 5.75 6.00
Contracts traded today; 6270