Sunday, October 25, 2009

Trade by Joseph - AAPL ITM bull call - Oct 26




ITM bull call on AAPL:
BTO April 10 strike 175 call
STO April 10 strike 180 call
The mid price of this trade is 3.73. ROI is 1.27/3.73 = 34% in 6 months.
The natural price is 4.45. ROI is 0.55/4.45 = 12.3%
If we can get a fill at (3.73+4.45)/2 = 4.09. The return is 22%.

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