The aim of this blog is to generate investment ideas for future trading opportunities. Please note that this is to generate ideas only and I am not providing any Investment advice and don't know the suitability of an investment idea. People are encouraged to perform their own research!
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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