SELLING PUTS ON APPLE AT 195 USD 19/07/19 BEFORE EARNINGS
As i mentioned before Apple will trade sideway till earnings
So decided to make some cash by opening a position short Put on apple at limit 1,50 $ (current price 0,55) as i expect a kick in volatility by then.
1,50 *100 / 19500 = 0,7% in 10 days so around 30-35% annualised per contract
Nice short term money and happy to get the stock at 195 if in the money.
Lets see but I really see volatility picking up on this hot stock as usual around earnings and people who like to scare the sh*** out of investors before earnings
I also expect a good earnings report on services as mentioned before which will help support the stock price or lift it higher.
Disclaimer: All this not bearing in mind external factors like trade war or war or else that may rock the market in general.
Bottom line at historic levels it is really hard to see a case for much higher prices in general so better play a small correction and make money on ST volatility.
Apple has a lot of downside protection such as cash holding and virtually no net debt. And good dividend for a tech stock + share buyback is plenty.
Any comments please let me know.
So decided to make some cash by opening a position short Put on apple at limit 1,50 $ (current price 0,55) as i expect a kick in volatility by then.
1,50 *100 / 19500 = 0,7% in 10 days so around 30-35% annualised per contract
Nice short term money and happy to get the stock at 195 if in the money.
Lets see but I really see volatility picking up on this hot stock as usual around earnings and people who like to scare the sh*** out of investors before earnings
I also expect a good earnings report on services as mentioned before which will help support the stock price or lift it higher.
Disclaimer: All this not bearing in mind external factors like trade war or war or else that may rock the market in general.
Bottom line at historic levels it is really hard to see a case for much higher prices in general so better play a small correction and make money on ST volatility.
Apple has a lot of downside protection such as cash holding and virtually no net debt. And good dividend for a tech stock + share buyback is plenty.
Any comments please let me know.
Trade closed: target reached:
expired out of money so i cash the premium