I'm 2 for 2 so far. Judging from the comments and the pms, I'll post a trade a week
AAPL February 110 Bear Call Spread
Buy the Feb 115 Call $1.25
Sell the Feb 110 Call $1.87
Net Credit of $0.62
So for every $438 I risk, I can make $62 That is a 14.2% ROI if the options expire worthless on the 3rd Friday of February
The Trade: To sell the February $110.00 Calls and then buy the February $115.00 Calls. As long as the stock closes below $110.00 on the February expirations day, both options will expire for a profit. If the stock climbs above resistance and then looks like it will close above $110.00 we will need to buy to close the February $110.00 Calls and sell to close the February $115.00 Calls.
Technicals: The stock has a 52-week high of $192.24 set during the month of May and it has 52-week low of $79.14 set during the month of November. For the last few months, prices have moved into a prolonged downward trend. More recently, the stock has bump up against resistance at the down sloping trendline and has just rolled over back below its 30-dma. The stock trades in the computer hardware industry, which is trading near its yearly low prices and institutional interest is very low. The MACD’s are flat at this time, however, the Stochastics have turned down into a new sell signal.
AAPL – Apple, Inc.
Apple, Inc. designs, manufactures, and sells personal computers, portable digital music players, and mobile communication devices, as well as related software, services, peripherals, and networking solutions worldwide. The company’s products include desktop and notebook computers, server and storage products, and related devices and peripherals; Mac OS X operating system; and iLife, a suite of software for creation and management of digital photography, music, movies, DVDs, and Web site. In addition, it provides music products and services comprising iPod, portable digital music players and related accessories; online music services, third-party music, audio books, music videos, short films, television shows, movies, podcasts, and iPod games through its iTunes stores; and portable and desktop speaker systems, headphones, car radio solutions, voice recorders, cables and docks, power supplies and chargers, and carrying cases and armbands. Further, the company sells peripheral products, including printers, storage devices, computer memory, digital video, and still cameras, as well as various other computing products and supplies. Additionally, Apple, Inc. offers various software products and computer technologies comprising Mac OS X operating system software; server software and related solutions; professional application software; and consumer, education, and business oriented application software. The company also provides Internet software and services comprising Safari, a web browser; QuickTime, a multimedia software; Mac, a suite of Internet services. In addition, it offers wireless connectivity and networking services. As of June 18, 2008, the company had 215 retail stores. Apple, Inc. was founded in 1976. It was formerly known as Apple Computer, Inc. and changed its name to Apple, Inc. in January 2007. The company is headquartered in Cupertino, California.





Reply With Quote

So pretty much you need to trust that the prices quoted by your brokers are decent. Since you don't always let your options expire, do you worry about things that affect the worth of your options, like dividends, interest rates, stock-issues/capital-raising, plain old supply and demand etc? (That's what I spend much of my day worrying about)
Bookmarks