Premiums are suggesting a 7% move in the stock so don't buy
options expecting to make a lot of money in either direction IMO.
Cost too much to get into the game.
Weekly Options: Sell 440/565 strangle for $3.10; as of Friday
those were about 8 delta either side, so 16% overall probability of
expiring in the money = 84% probability of keeping $310.
February Monthlies: Sell 415/585 strangle for $4.50; also ~8
delta = 84% probability of keeping $450.
Capital tied up with each trade is about $5K.
Expected move is +/- $30 from $500 as of Friday's close, so each
trade goes more than 2x MMM.
Naked risk on either side, so know ahead of time what to do if
the move is much bigger than the market expects.
AAPL earnings this week
Posted by rbreese on 20th of Jan 2013 at 11:50 am
Premiums are suggesting a 7% move in the stock so don't buy options expecting to make a lot of money in either direction IMO. Cost too much to get into the game.
rbreese, How about selling options?
Posted by sbwoman on 20th of Jan 2013 at 01:04 pm
rbreese, How about selling options?
here is another way to play it
Posted by zach06 on 21st of Jan 2013 at 08:52 pm
http://seekingalpha.com/article/1123491-a-remarkably-safe-way-to-play-the-apple-earnings-announcement?source=email_rt_article_readmore
I guess if you have
Posted by rbreese on 20th of Jan 2013 at 03:22 pm
I guess if you have the cash in your account to cover the volatility . The premiums will shrink a lot after earnings. Good luck.
Here are two option trade ideas for Apple:
Posted by a_l_ on 20th of Jan 2013 at 09:27 pm
Weekly Options: Sell 440/565 strangle for $3.10; as of Friday those were about 8 delta either side, so 16% overall probability of expiring in the money = 84% probability of keeping $310.
February Monthlies: Sell 415/585 strangle for $4.50; also ~8 delta = 84% probability of keeping $450.
Capital tied up with each trade is about $5K.
Expected move is +/- $30 from $500 as of Friday's close, so each trade goes more than 2x MMM.
Naked risk on either side, so know ahead of time what to do if the move is much bigger than the market expects.
Apple trade
Posted by zach06 on 20th of Jan 2013 at 10:05 pm
The 440 put has about a 91.73 chance of worthless
The 565 call is about a 93.52 chance of worthless
THe 415 put has a 97.62 chance of worthless
The 585 call has a 96.30 chance of worthless
There seems to be lots of open interest at 450 put and the 550 call
I bought some weekly butterflies here:
545/550/555 call for 20 cent debit. Max payout 5.00
455/450/445 put fly for 0.07 cent debit.. Max payout 5.00
I will add some other positions around them. On Tuesday
the odds are in the 'house's favor'
Posted by hazbin1 on 21st of Jan 2013 at 06:21 pm
I like those 440 put odds, however, let's see how it opens (down preferred of course), i'm looking at the 450's or 460's to short. nothing fancy here.
thank you all for your
Posted by sbwoman on 21st of Jan 2013 at 12:58 pm
thank you all for your thoughts and ideas.
AAPL in for the money
Posted by hazbin1 on 22nd of Jan 2013 at 02:45 pm
couldn't resist, plus needed to put my $ where my mouth is, partially chicken though, short 1 feb 1 460 p @ 5.80