Thursday, September 23, 2010

Switch Oct Apple 300's with Apple 310's

I believe the market is in for a breather for the next few days and though we could see a pullback in Apple as well, I prefer not to take Apple off the table completely as I continue to believe that the stock is breaking out and will continue to do so as we approach their earnings report next month. The Apple $300 calls closed at $3.80 while the $310's closed at $1.80 meaning that we can leave an apple trade on with half the cash we would need if we leave the Oct 300 strike on. I would take half of the profits left over from the $300 strike and buy the $310's. If apple continues to break out and successfully breaks $290 tomorrow, these calls would appreciate nicely as well. I think we still have a good 40-60% upside on these calls just on another $3-$5 move in the stock over the next few trading days.

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