Frank_capra_4 probably wishes I would do a magic act and disappear.
"Every man is an artist in his on little way. My art is numbers. I am about to paint my masterpiece."...a line from "Man on Fire"
Da Vinci has no risk but lost of profit.
Renoir has a risk. You must buy the stock if it goes down. For example, if you sell the Jan 2016 $90 puts for $10. You must buy at $80 or $560 ( pre-split).
If you should calls and they have fallen 50%..do not be too greedy. Like magic, it is there then it is gone"
The trick is not to watch too closely but far away.
The present is a set up for the next act.
Now, for weeks it was posted that Wall Street almost always takes AAPL down before Monthly Option Expiration..why?..For the next act, Earnings on Tuesday, July 22
Yesterday I posted the sale of the Jan 2016 $90 puts for $10..you have to be willing to buy the stock at $560. O only recommended this when 99.9% Wall Street became bullish.
Last Dec 27, 21012, I recommended the sale of the Jan 2014 $520 call and put for $148 then buy a Jan 2014 $380 hedge put. This was a disaster for many. Why? Many did not understand the nature of the selling puts. Dec 31, 2013 Stock was $540; so, $128 was profit
If the stock runs,,,you pocket the profit.
If the stock falls, Da Vinci has your back
people who followed the Da Vinci strategy have a great seat. Now if they incorporated the new Renoir Strategy...that puts an additional $70 cash in your pocket. raising the giveaway to $700 to $720
Da Vinci started at $530 - $550 selling the Jan 2015 covered calls for $50 to $55.
Some traded these three times in Jan to Feb for a $25 to $75 profit.
When the stock hit the giveaway the Jan 2015 calls were closed at and the Jan 2016 covered calls sold at the strike price of the previous giveaway.
This raised your equity $100: stock appreciated from $530 to $550 up to $580 to $600. Then you kept the $50 original cash to raise your giveaway to $630 to $650.
Now the Renoir strategy puts $70 in your pocket. But you must be willing to accumulate the stock at $560 between now and Jan 2016. You can trade out of these for a profit when you see fit.
tThese last two days, the calls lose most of their premium. A power play by the Hedge funds can pivot this on a dime.
I always like to close out any sale of a call when it falls 50%.
However, I do not track or follow short term options. My track record is terrible trying to guess short term action. Good luck
this is a very tight range. More money can be made in a tight range than wild gyrations with the HEDGE FUNDS as seen today
Date Open High Low Close Volume Adj Close*
Jul 15, 2014 96.80 96.85 95.03 95.32 45,477,900 95.32
Jul 14, 2014 95.86 96.89 95.65 96.45 42,731,000 96.45
Jul 11, 2014 95.36 95.89 94.86 95.22 33,988,800 95.22
Jul 10, 2014 93.76 95.55 93.52 95.04 39,662,200 95.04
Jul 9, 2014 95.44 95.95 94.76 95.39 36,290,200 95.39
Jul 8, 2014 96.27 96.80 93.92 95.35 65,130,000 95.35
Jul 7, 2014 94.14 95.99 94.10 95.97 56,305,400 95.97
IT most always dips in the morning...
A play where you can not lose money.
If you are a shareholder, Sell a high premium later dated covered call for 10% then buy an August same strike price call....this gives you upside and a downside hedge
Historically, Wall Street does this.
This is why I suggested not to buy options until Tuesday afternoon IF you must but with market money never your own
Wall Street setting up for the "V" action.. Will it come before Friday or on Monday? I do not know.
Between now and Friday is pure gambling for July monthly option trading
I found this very interesting today?
This is a bullish play for the seller but not my suggestion