I only gave ONE option play for AAPL in 2015 and it harvested $19 profits. Maybe you can show me another..?
I have posted to wait until April 27 for another idea; didn't I?
I do not recall giving any bad advice on options to anyone.
If you lost money you went off of the reservation and gambled.
I suggest strategies that use "market money" and locking in a profit as I did with NFLX that put $139 cash in people's pockets this week on a $475 investment
here is that Jan 24 suggestion:
biglefthook_00 • Jan 24, 2015 10:01 AM
Da Vinci with a footnote
Own the stock then sell a Jan 2016 covered call for $13+ only to buy a Feb 6 present market price strike price. You have 100% upside and $10 downside protection at no cost
In this case Feb 6 $113 call for $3.45:
113.00 AAPL150206C00113000 3.40 3.35 3.40
Net is $10 tax deferred cash in your pocket
This is a RECAP of the Jan 2015 Da VINCI play.
This has already put 17.2% return in your pockets as of jan 2015
this is obvious.
I am through here. I ONLY came here for RESEARCH on my Da Vinci Strategy.
Be careful of pushing people into heights that will give them nose bleeds.
this is 29% return in how many days?
the beauty of this is the $139 cash is in your pockets now.....$43 being tax deferred until the stock is taken or Jan sale is closed out.
Of course, your stock can be taken at $475 but you are really giving it away at $614.
On a side note, if you like this stock ring the register by holding the stock and selling an out of the money call fro 15% above market price. It will act as a hedge and put tax deferred cash in your pockets today
First question, For every 100 shares you own you are using market money from the sale of the Jan $475 call at $66 to buy one April 17 call at $23 with $43 tax deferred cash in your pocket.
Second question: I will wait for a stock to fall then post the research. But from the past, the loss in near term call premium is often offset with drop in Jan premium. Besides in this case, after both trades you had $43 tax deferred cash in your pocket as a hedge.
The beauty of this is it put $140 cash per share in your pocket today.
stock was only up $475 - $571+...so $96
Anyway I just wanted to highlight the advantages...
When a stock goes down I will highlight the flip side of this coin.
If stock get taken at $475...you are really walking away at 614.
More importantly this puts $139 cash per share in your pocket today.