Go to Jan 2016 call chart.
Look at $5 call spreads...see where the $5 spread is higher than $4...this usually shows market price strength.
It is as low as ...?
I think I see $575
Alibaba (BABA) is targeting China’s $5.9 billion streaming video market.
Alibaba to open streaming video service in China Fortune
United Tech gets out of helicopter biz; CVS, Target pharmacy deal; Homebuilders merge Yahoo Finance
Will Alibaba Spoil Netflix's Plans In China? Forbes
Alibaba to launch Netflix-like video streaming service in two months Reuters
Alibaba Plans Subscription Video Service The Wall Street Journal
The Chinese e-commerce giant is planning to launch a video subscription service, called Tmall Box Office, or TBO, modeled after Netflix (NFLX). The company expects the platform will be available to Chinese consumers in two months, according to Alibaba’s head of digital entertainment.
The service will face stiff competition from companies, including search engine giant Baidu (BIDU) and rival e-commerce site Tencent Holdings (TCEHY), which have both invested in streaming platforms in China.
People left themselves vulnerable...
Always protect yourself
these are now $122
You can close thees out then sell a Jan 2016 $640 call for $83...
Net cash ($70 +$83) - $122 = $31
New giveaway is $640+ $31 = $671..
But you must give back TAX DEFERRED CASH of $39
I would do nothing KEEP T70 cash in your pocket with a giveaway at $640
20/20 shows AAPL always gravitates to the mean $127.
I was WRONG..I tired to raise it to $130 but old habits die hard for many.
Yes AAPL will see $133+ again...probably $136 after earnings
this person bought their stock at $130 and sold $130 calls for $11- $12.50.
This trade just lowered their cost to $125 from $130.
So no real profit..since it closed the gap between original costs and market price
sell a covered calls above market price
sold at $11- $12.50
bought back today at $7.50
130.00 AAPL160115C0013000 8.05
contracts traded today: 5207
then the giveaway was $640....
who cares! You made money...if stock is taken BE HAPPY
a few months ago when AAPL was $127 - $130, these traded at $11 - $12.50.
I only posted hundred times to sell them IF a shareholder...
Today a few are closing out this trade...not many
1. Never suggested to short
2. Did suggest to sell covered calls with a giveaway at $640 or lower...My theory is...You made your money; who cares!
June 2016 and Jan 2017 calls have also fallen.
What is my point..?
I only observe and report
months ago they sold for $12.50