there was a delayed response...March 26...AAPL hit $549..close enough..so WE stayed
Mar 26, 2014 546.52 549.00 538.86 539.78 10,706,000
Now, even IF anyone did short this or any stock and it runs...the answer is an easy fix. Buy the stock then sell a covered call for the paper loss on the short.
I will show mid-Summer even after the stock RUNS how this is a profitable trade after I make a few adjustments....why?...TIme erodes all premium
if you tired reading what is read rather than turn it around you would be up $300 in cash the past few years.
typo..IF you tried reading what is written rather than turning it around to fit your agenda you would be up $300 in cash the past few years with a $600 cost basis.
IF you sold covered calls for $50+...great..you made your money and the principle is secure. If the stock gets taken,...WHO CARES
to be called away the stock needs to be $605 to $615...
do you understand anything?
this is why one never sells a covered call for anything under $50. I have been posting this for years
You can close it out and sell a higher strike price for more than you cover at for a profit and keep the stock
It also gives you that cushion on the upside as well. People who sold cheap near term calls did NOT listen
at the open then close see how the Jan 2015 and 2016 call premium moves compared to stock price action.
This is a win/win. Your giveaway is above $600 and you pocket the AAPL dividend.
look at the ratio....
then when the dust settles it will drop more. So? If you sold covered calls for $50+ do nothing. Being a shareholder you own the stock and are in the best possible position.
It is when you try to be cute is when you lose money...today...do nothing
The option action was BEARISH for AAPL and BULLISH for FB.
So, the market tried to wipe out the option value.
This needs t open strong above $65 and run or else all the calls will expire worthless.
I hope many use money from the sale of Jan covered calls to buy near term calls using market money as I posted yesterday
many need this stock higher. So let it run
they have all day to figure that out...
Their problem not mine but I am willing to help anyone.
For 13 years, I always posted never to sell the rights to any stock for anything less than 10 to 15%.
AAPl's move yesterday is almost identical in percentage to GOOG's two quarters ago as I posted