Selling Swing: shorting AAPL 260 weekly puts at 1.10 and 1.0
Posted: Thu Jul 29, 2010 10:03 am
Selling Swing: shorting AAPL 260 weekly puts at 1.10 and 1.00 2X OVERSIZED and buying AAPL 260 calls at 2.79 area OVERSIZED. The intent here is to use the premium depreciation into expiration to profit of my belief that AAPL will bounce from here or simply expire above 260 making the case for a 100% gain by tomorrow on the 260 puts. The 260 calls are more speculative but I considered the 260 pass earlier in the week as very significant and this bet is for a bounce. If the bounce dose not work out and we flatline then the short on 260 calls should still yield us a oversized pure profit even if the 260 calls lost all premium by tomorrow.