#aapl diagonal spread

[kingstontrader]

AAPL LEAPs Diagonal (Poor Man's Covered Call)

Opened a Poor Man's Covered Call position on AAPL today, as part of a longer term position.  

Long 1x Jan 2016 450 LEAPs at 92.50

Short 1x OCT 505 call at 1.82

Total cost of the position is $9090 on open.  If I am able to make a 10-20% profit of the position early on I may close the position.  I plan on letting the short calls expire worthless or rolling them for a profit, most likely monthly. If the short call goes in the money, I will try to trade around it to generate some more premium if possible (such as by selling a put against it).  

[kingstontrader]

Closed AAPL Diagonal Spread

I closed the AAPL Diagonal Spread on Aug 14. Position was a 5x 550/630 Apr/Oct Call Debit Spread.  Total collected from the sale was $40,591.27.  Total cost of the position up til this point is $40256.93, leaving me with a profit of $334.34.  I botched one roll that put me ITM fairly quckly and then I struggled to get the short call OTM.  When I have the time, I am going to do a post-mortem look-back to see how I can avoid the mistakes I made... I will post my learnings.  For now, I am happy to have at least squeaked out a gain.  To follow the history of this position click the #AAPL Diagonal Spread button below.

[kingstontrader]

Rolled AAPL Short Call from Sep to Oct.

Aug 6. Rolled the 5x AAPL Sep 610 calls to Oct 630s for a credit of $542.24. Total cost of the position is now $40256.93. I felt I had to roll the short call because the delta was becoming very close to the delta of the long call.  I hate it when that happens because it means that as the stock goes up, the value of the position goes down aside from the time decay thats eroding away... and with 47 days til September expiry, I felt the stock could really get away from me here.  If AAPL takes off over the next few days, I may need to close the whole position down or come up with some Mark Lexus clever strategy to hedge my way through it.  Will see.  I wouldnt mind a pullback to roll the short call back down, but I'm not holding my breath.  To follow the history this position click the #AAPL Diagonal Spread button below.  I now have a APR/OCT 550/630 Diagonal Call Spread

[kingstontrader]

Rolled AAPL Short Call from Aug to Sep

Aug 4. Yesterday I rolled my 5x 590 AAPL SEP short calls to 610 SEP for a credit of $467.26.  When I rolled to 590 on on July 26, I should have given AAPL a bit of running room, because I found myself fairly deep ITM coming up to the Ex-Dividend date this coming week. I had to roll it out to September which I didnt want to do, but I was starting to not have much of a choice.... I didn't to get stuck having to buy shares to provide them to someone if called before expiry.  I had the Long April Calls as to cover the Short calls but I didnt want to go through the hassle in the end so I rolled.  I would welcome a little pull back after dividends are paid to get me OTM, but I'm not holding my breath.  Coming up to the release date of iPhone 5 could keep my short calls ITM for awhile.  My current positions is now a 5x Apr/Sep 550/610 Diagonal Call Spread with a total cost of the position at $40799.17.  To see the longterm history of this positions click the #AAPL Diagonal Spread button below.

[kingstontrader]

Rolled Short Call on my AAPL Diagonal Spread

July 30. Rolled the Aug3 590 Call to the Aug18 595 Call for a credit of $92.38.  Total Cost of the position is now $41174.05.  I currently have a 5x 550/595 Apr/Aug Diagonal Call Spread.  You can follow this position by clicking the #AAPL Diagonal Spread tag at the bottom of the post.

[kingstontrader]

AAPL 550/635 Apr/July Diagonal Spread position

I opened a Diagonal Spread on AAPL today with the intention of rolling the short call Every month. I expect the remainder of the year to be a big one for AAPL as iPads and iPhones continue their dominance in their space, and rope people into the AAPL ecosystem that is so difficult to escape (itunes, OSX, iOS etc...).  For the bought position, I budgeted $50000 as a starting point and looked for a long-term call with about 0.70 delta. I also wanted the Long call to have at least 50% intrinsic value. I landed on 5x April 550 Calls for $99.95.  Intrinsic value is about $60 of the option value at time of opening.  Total Cost was $50027.50.  The front month short call was a bit more difficult to pick. Monthly, I aim to choose the option that would typically return about 5% of the bought option price... That would be around $5... but this monthly option cycle is half over so that would probably in too close a short strike to the long. I settled on selling 5x $635 July Call $3.85 which netted $1908.71 in premium collected.. or about 3.8%. Time will tick away the next 2 weeks and I anticipate premium will be rich for the weekly options available prior to AAPL earnings on the 24th of July, so while I plan on rolling monthly, I will see what the newly listed weeklys look like 2 weeks from today.

Summary:

BTO 5x April 2013 AAPL 550 Call at $99.95 = $-50027.50

STO 5x July 2012 AAPL 635 Call at $3.85 = $1908.71

Total Cost of position = $-48118.79