AAPL likes to trade in a "V" pattern for years now
up $3.59 from low yesterday.
$127 is the mean...AAPL will return to that value in a very short time
However, If one person lost money I failed.
So! Tomorrow needs to be an UP day
More money is made within a tight range than wild grations!
Why do you think AAPL has traded accordingly since Fen 4..?
Calls?pit ratio was 2/1.
Wall Street HATES RETAIL.....nosedived the stock.
Tomorrow they will play the option see-saw....
I was WRONG with my $136 call.
But I did post for weeks to close out profits on all calls and sold puts.
I always said to close out that 22,000 Jan 24 $126/$130 call spread last night and this a.m.
This set up two trades...
1. Close out the sale of Jan 2016 calls and you can sell Jan 2017 calls for another $12 if you have not already done this.
2. As for sale of the Jan 2016 put,,,this will expire worthless.
that song in my head .."two out of three ain't bad!" I was wrong with y $136 target today...but it will happen.
So they dropped it to $130 down from open at $132.97
Why? We said $133 before earnings! yesterday and today they used our TRANSPARENCY to trade the $3 action...
That July 24 $26/$230 call spread is now $2.60...only dropped .20 and stock went drown $3...However the max profit is $4...spread is now $2.60...profit is now 130 to 160%...close this out before earnings...Market maker can keep the spread at same even when AAPL goes higher
$136 after earnings
Jan 2016 options six months out have almost 7% premium each...15% in total.
This will #$%$ off Wall Street because you are sitting on the fence not on either side
PIcasso Strategy is when you SELL both call and put ..use Jan 2016 options. This will put $18 - $20 tax deferred cash per share in your pockets.
With a few dollars of this you can hedge the sale of the long term call and put.