Tuesday, March 15, 2011

AAPL 3 day bull put credit spread

With the U.S. stock marketing selling off sharply at the open, following Japan's Nikkei Index dropping off 11%, I started watching the chart on AAPL.  AAPL opened $11 lower than where it closed the previous day and I believe AAPL will stay about where it is now or rally between now and expiration Friday, which is in three days.  So I sold the March 2011 330/325 puts for a $.60 credit.  While I'm hoping to enjoy over a 13% return in three days, I realize this is a high-risk trade.  Although there are a few adjustments I could make if this trade goes against me, I am not willing to take ownership of AAPL stock at $330 so I'll  be monitoring this trade closely and if AAPL breaks below $335, I'll close this trade out.

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