Hi all, been busy but catching up on the blog. Wow, many of you seem interested in the technical side and reading buy/sell signals. That certainly is what the bigger boys do so there must be something to it. For me I still don’t get it. Any knowledge gives an edge but years ago when I also tried to learn them and use them I was constantly confused with receiving opposite signals. Good luck and keep sharing the ideas.
Regarding my recent plays. I must confess that I, for the time being have ignored diversification as I am riding the AAPL coattails. I am long the Jan 490’s and some 495’s and selling the weeklies usually around 20 points over the stock price when I open the position. Right now I am doing the 520’s.
AAPL has been cooperating just fine as it has so much going for it, new I-Pad coming, new I-Phone etc. This now diversity is not for all but in this particular place in time I like it. It is returning around 5% a week. There are some great spread positions in plain vertical or Iron condors with aapl which of course gives a floor to your possible losses.
Regarding the general market I do want to caution all regarding the possible Israel attacking Iran. If that happens and I am pretty sure it will, who knows what will be next. Iran will try to shut down the straights and oil will go to super hi? So do be aware of these world events as the market will dive as soon as the word is out. Will we get into it also? I see no way that we can avoid it? But who knows.
Wednesday, February 22, 2012
Thursday, February 9, 2012
AAPL on fire.
Hi all, I hope some money is being made this week. What a run by AAPL. I did pretty well with a wide calendar [vertical] spread. I had bought the Jan 2013 450’s and sold this weeks 485’s/ The goal is to have each week expire and then move out 25 points from the stock and sell the next weeks. Well AAPL ran right on past my 485’s but I made good $ anyway. I closed the spread as I want to open another tomorrow and it will be the Jan 2013-485 and sell the next week 510. If AAPL continues up I will do this weekly. For me it has seemed to be the least stress and most profit for the time being. The goal next week is for AAPL to run to 505 etc and expire and I make not only the premium that I sold the previous week but the bought one for Jan ’13 goes up a bunch also.
One negative is you need an account over about 5800 per option The downside is AAPL might pull back some but if you take the long term approach and just keep selling calls around 25 pts above the stock you should be fine. AAPL could drop down to 460 and you sell the next weeks 485 and you are still making money. It is somewhat like the traders that sell puts and figure if the stock gets assigned, they will sell covered calls until the stock come back.
This wide spread has been good to me with AAPL and GOOG also.
Keep all the great suggestions you traders have been bringing forward. We all learn and develop new ideas and ways to trade.
Thanks for sharing.
Jerry
One negative is you need an account over about 5800 per option The downside is AAPL might pull back some but if you take the long term approach and just keep selling calls around 25 pts above the stock you should be fine. AAPL could drop down to 460 and you sell the next weeks 485 and you are still making money. It is somewhat like the traders that sell puts and figure if the stock gets assigned, they will sell covered calls until the stock come back.
This wide spread has been good to me with AAPL and GOOG also.
Keep all the great suggestions you traders have been bringing forward. We all learn and develop new ideas and ways to trade.
Thanks for sharing.
Jerry
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