Apple (AAPL) is well known for the investor’s community. This stock is within my Watchlist. The main information of this stock is:
Intrinsic Value: $195
Sector: Technology
Dividend: 0.0
Earnings: next one is in January
52weeks range: 201-78
Open Interest: 0.6
Community Sentiment: Lateral-Bullish
From Fundamental point of view, Apple has very good numbers and recently showed better results than expected, producing a gap in the price.
Today, the price broke up the 2008 Resistance level at 200.
I was expecting to the price to calm down (now it is a bit overbought), but today the price went up strongly, so a good way to play it is with a Bull Put. I will propose two kind of strategies (conservative and aggresive).
Conservative
Bull Put 200/190
Max Profit: $1.87 (credit)
Max. Risk: $8.13
Primary Exit (price > 200 at Nov. expiration): Options expire ITM. We keep max. credit (23% ROR)
Secondary Exit (lateral movement between 200 and 190): if price is below 200 close to expiration, adjust the position to a Collar Trade.
Secondary Exit (bearish movement): if price breaks down 190 support –> to adjust to a Collar Trade
Agressive
In case we want to play more contrats, we can reduce the Short Put strike in order to increase the probability of expiration OTM.
Bull Put 190/180
Max Profit: $0.96 (10.25% ROR)
S1: if price expires at Nov over 190, we get max profit
S2: If price breaks down 190 support, to adjust to a Ratio Backspread, adding a Protective Put.
SharkOpciones
Disclaimer: this strategy is for educational purpose. Not recommendation.
