thanks for your input
1.the stock would need to go up really fast and high all week, but theta would dwarf the gamma on weekly options, especially on exp day, also im not selling my jul call/puts every week.
2.I will keep the premium for the dec puts , again not selling the july puts so not concerned about a weekly loss
3.if AAPL moves more than 2% i would BTC the dec put whenever it reaches .05-.20 and STO another weekly
4.if AAPL moves up and down like a yoyo i can BTC the opposite call/put midweek and STO another weekly call/put. yes I would lose a "little" on my jul contracts but "a lot" on the weeklies which is what I want. I am using the long dated options for collateral so i dont have to sell naked, worst case scenario-even if the jul calls and puts expire worthless i still come out ahead.The chances of that happening is almost impossible though,more than likely one will be worth more than the other.
the best time for this to work is to open the trade with low volatility (benefit back month options) and to sell premium every week,especially near earnings.
if the market goes in only one direction all week, up for example, my short puts will expire worthless my short calls will be higher than 5.10 but will be covered by my long calls....theta will kill weeklys faster than the jul 565 calls...close the spread and do the same the following week
does anyone trade double diagonal spreads for weekly income?
BTO JUL565 call @45.90
STO DEC13 565call @ 5.10
STO DEC13 555put @ 4.90
BTO JUL 555 put @49.35
initial investment of $8525.....stock price at the end of every week cannot be where the short calls and puts are...one will expire worthless...the other covered by the long position or STC position
-theta benefits short seller
-doesnt matter if stock goes up, down or sideways
-31 weeks until jul 19 exp X minimum of $275 weekly to break-even
-31 weeks until jul 19 exp X conservative $550 weekly for 100% return
10/08-HIMX- buyer of 5000 march 12/19 call spread @ $1.08
10/17-HIMX- buyer of 3000 march 2014 12/19 call spread @$1.14 at the ISE....betting $882k on upside capped at $19, which is roughly +70% from current price.....GOOG is going to buyout HIMX
im long this stock and have a small amount invested but i follow unusual options activity and block trades.....on sept 12 there were 10,000 sept 3 puts BTO @.17....no retail investor has 170k to lose on a trade thats not gonna happen....this investor knew this news was going to tank the stock but the timing was poor and did not roll the positions out one month so the options expired worthless
anyone find it odd AAPL releasing Q4 results on a friday afternoon?....this lowers wks in Q4 to 12.5 from 13......CHL deal will be announced in conf call on Oct 18, which gives the 14wks of earnings in Q1 instead of the normal 13 with China Mobile on board....same scenario happened in Q1 2011.......slick move AAPL
they had an "extra week" of earnings this quarter,13 instead of 12 that no one is talking about ......the last time that happened, no analyst took that into account and the stock shot up
450 & 460 calls @ 17,000...call spread?
475 calls @12,320
500 calls @16,641
525 calls @ 11,164
550 calls @13,275
these were bought a few weeks ago indicating a very bullish move a month after earnings
last qtr aapl generated 4.2 billion/week, yes it was xmas but the chinese new year started on feb 10 and lasted 15 days....which is the equivelant of 15 days of xmas over there...revenue was up 67% in china last qtr
1 week after last qtr earnings they added 36 carriers covering 300 mil customers.....last qtr iphone had triple digit growth in china