May 05 2008
Sold Naked Puts on AAPL, Again
I got out too early last time around and now that Apple (AAPL) has gone up another $50, I’m back in. While AAPL was trading at $183.24, I sold one AAPL June 170 naked put (APVRN) and received $449.25 after commissions.
My reasoning was simple. Earnings were already out and good and the chart didn’t look like AAPL would pull back lower than $170 by June expiration. Throw in the good premiums and I’m back to repeat previous trades. I know part of my mindset is to get in deeper invested and AAPL trading that high made it easier. Had I been on my toes I would’ve gotten in as soon as AAPL posted the good earnings report. I didn’t move quickly, so my strike is higher and my premium is lower. I’m still in though.
I planned to make the trade in my IRA, but didn’t have $18k available. AAPL could easily [...]
Original post by Alex Fotopoulos