Sunday, April 22, 2012

I got long (4) 390/385 AAPL put spreads on 3/14 and was under water immediately and then all of the next four weeks, was betting that it wouldn't break $600 on the upside and would sell off if it did. I was way wrong.  Early this past week on expiration I finally had a close under my short strike at 385, but because volatility increased on the $50 sell off I wasn't able to even scratch the trade for a push. I got lucky and at the open on expiration Friday I was able to finally scratch the trade for a few pennies profit. Right after I sold when we were at $584 I watched it go to $590 and was feeling good, then it ended up finishing in the green, but at $630 with a week to go I needed a miracle and got it, so happy to not lose on this trade. The blue lines are the strike prices.

I took this screen shot right when I got filled to close the trade and was feeling gracious, we hadn't been under my strike for more than an hour any time in the last few weeks. I think my drawn line is $585 or maybe my cost avg of $587. I was using it as a visual the previous few days looking to break even.

2 comments:

  1. You meant to say 590/585. I've been run over by AAPL this year, hope to take some revenge tomorrow. Have taken a pretty large position in the Sosnoff big wide iron condor, and sold some strangles even further outside the range of the IC. Now just need an inside move.

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  2. Wow, must have been tired when I wrote that. Thanks for the catch. I broke even on this trade essentially but still down trading AAPL. I lost on a put spread in March expiration. I currently have zero positions on.

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