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
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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
Posts
APPL moved up. Adjust the trade to double calendar: (assume 4 contracts)
ReplyDeleteSTC 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
AAPL drops today. Adjust the trade to double calender with strike 190 and 200.
ReplyDeleteSTC 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
exit the trade with 15% loss.
ReplyDelete