To take advantage of the high volatility, I plan on selling a naked put over earnings for either the $155 or $157.5 strike price for this Friday's expiration (February 2). Most likely the $157.5 strike for around $0.80.
A less riskier option (no pun intended) is to sell a BPS about $10 below the closing price for the same February 2 expiration.
If I get put the shares, I won't mind since it's Apple. They are only the largest and most profitable company in the world. Shares + a covered call to get rid of the shares is the back up plan.
A less riskier option (no pun intended) is to sell a BPS about $10 below the closing price for the same February 2 expiration.
If I get put the shares, I won't mind since it's Apple. They are only the largest and most profitable company in the world. Shares + a covered call to get rid of the shares is the back up plan.
Note
I did not sell the $157.5 put, but looks like the trade would have worked fine since AAPL looks to close above $160 and the 200 day SMA.
Buy higher and sell higher, and manage your risk to make more than you lose!!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Buy higher and sell higher, and manage your risk to make more than you lose!!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.