Traders Playground

Selling Swing: Creating credit spread here on by shorting 515 weekly puts and buying 510 weekly puts. AAPL has fallen a lot and into the tomorrows earnings I wish to use this huge premium in puts and short it into the apple event. We already have a 535 credit spread now we enter into a 515 credit spread for if falls below 535 I would not mind owning the stock, and if it fell to 515 I would be the happiest buyer ever of stock, something I do not see happening. should have soft iPhone sales after the last huge iPhone quarter but the new iPad should pick up the slack so any bad news should now be priced in. Look historically any time you see at the 50 day moving average it’s a screaming buying opportunity, so I have to start focusing bullishly on now , especially after the profits we made on its fall last week. We have finally seen a gap cover on this morning with the move bellow 570. I am also looking to buy some far out of the money calls into the event maybe 1x oversized since we have already 2x oversized with the puts shorts just for in case we have a huge explosion in the stock after the event. The long calls stake would be monthly options not weeklies to give us a little more time.

This trade is one part of a larger strategy so please look back at Previous posts to see the whole picture. AND IF YOU ARE NEW, PAPER TRADE FOR AT LEAST A FEW MONTHS because this is ADVANCED OPTIONS TRADING !!