It was this time that year, AAPL Was $630 I suggested to sell Jan $650 call and put for $85 each...
I stressed the importance to buy the technical put at $630 - $170 = $460 for $30+..It hit $483.
People chased the falling premium of the call and put first on the w ay down then up.
Year end, The put expired worthless and call expired at $30
Pull up the "archive" posts...i forget the exact strike prices..it was $630 or $650
Walking down means we chased the premium....sold calls on the way down...sold puts on the way up.
The above example only worked for people who sold both jan $650 call and put for $85 bought the $480 HEDGE PUT...$650 - $170 = $480.
This was amazing when it happened...go back and look it is in the archives with AAPL.
on a side note, WE are VERY LONG here
As a learning lesson for ALL.
This worked many years with AAPL...AAPL was $650 pre-split...My suggestion was to sell Jan $650 call and puts for $85 each....Stock fell to $470. at the end of the year, both call and put expired near worthless.
On the way down, people "walked down" the call premium...on the way up, people walked down the put premium.
there is one person here is is dedicated to helping people...J.....
listen to him; no one else
On a side note, my friend, Al Ruddy, two time Academy Award winner