Friday, February 12, 2010

AAPL Calendar Trade by Joseph - Feb 10th 2010



Technical:
AAPL is trading in a range between $190 and $215.
Expectation is mildly bullish in the coming month.

Trade setup:
BTO April 2010, Strike 200 CALL at 10.06
STO March 2010, Strike 200 CALL at 6.80
=======================================
Net debit: $3.26
BE at March expiration: $190.65 and $210.54
Max Risk: $326 per contract
Primary exit: 20% gain or 25% loss
Secondary Exit:
1. Bullish: Roll up some of the short call, and the trade becomes calendar + bull call calendar
2. Bearish: Roll down some of the the short call and the trade becomes calendar + bear call calendar
Posted by at

3 comments:

  1. josephFebruary 16, 2010 at 9:17 AM

    APPL moved up. Adjust the trade to double calendar: (assume 4 contracts)
    STC 2 APR 10 strike 200 call.
    BTO 2 APR 10 strike 210 call
    BTC 2 MAR 10 strike 200 call
    STO 2 MAR 10 strike 210 call
    Net premium 0.0
    BE at MAR expiration $194.66 and $216.45

    ReplyDelete
  2. josephFebruary 23, 2010 at 9:31 AM

    AAPL drops today. Adjust the trade to double calender with strike 190 and 200.
    STC 2 APRIL 10 strike 210 call
    BTO 2 APRIL 10 strike 190 call
    BTC 2 March 10 strike 210 call
    STO 2 March 10 strike 190 call
    Debit 0.55
    BE 185.9 and 205 at april expiration
    Costbase is 7.07 per contract

    ReplyDelete
  3. josephFebruary 26, 2010 at 7:37 AM

    exit the trade with 15% loss.

    ReplyDelete

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About Me

An engineer by training graduated with B.Sc (hons) and MBA from Strathclyde university in Glasgow, Scotland. Started as an engineer in R&D for 3 years with Philips. Then, worked with DuPont for 13 years. Last job was VP, Marketing for Asia Pacific. Left to start a number of companies in various segments which include a large electronic distribution, a VoIP provider, an internet trading portal in Australia,and an executive training consultancy firm. Have listed companies in NYSE, Australia Stock Exchange, Singapore Stock Exchange Main Board. I was on the Board of Directors for 1 company listed in Thailand, 1 in Singapore and 1 in Australia. Was in the senior management of a company listed in NYSE. Still holding major share positions in the VoIP and Executive training companies. Both are private companies.

Disclaimer

These articles merely reflect the opinions of this author and are by no means a guarantee of future economic conditions, market or stock performance. Though the author strives to provide accurate and relevant data, he sometimes relies on external sources and cannot assure the reader of the accuracy of these external sources. Additionally, these articles are provided for INFORMATIONAL PURPOSES ONLY and are NOT MEANT to provide investment advice to anyone. For investment advice, please consult your professional adviser.