Apple Earnings – Closed for 7 % Profit
Published on January 18, 2007
Apple Earnings – Closed for 7 % Profit
Well, despite the great show, apple didn’t turn out a great show in the stock performance. Since I played non-direction on the earnings, I covered my short 95 call leg for $0.20. This resulted in $95 profit on $1365 investment i.e. 7% in one night. Though apple continue to fall as of this writing, I didn’t want to give my profits back to the market, so clsoed it for 7% profit. This closes my earlier posting about apple which were posted here and here. Not to forget though, I still have 7 Jan 100 calls. Should apple decide to make a comeback tonight or tomorrow, that will be a lottery ticket.
Again as I mentioned Y’day, these speculative trades are only a fraction on portfolio.
The search is on for tonight’s play, stay tuned!
well, if the chart mirrors that of last year, there will not be any recovery. it fell pretty steadily for a few months. if i see $65 i will buy back, but otherwise i can wait til august for aapl to redeem itself for this drop.
nice site btw. did u build it yourself?
thanks meth.
No I have not designed the site. It is one of the popular K2 wordpress theme that I have used. I used to provide basic skeleton to the site. Plugin etc can be found on the net widely.
[…] Let’s take Apple’s example that I played (details are here). I was bullish on AAPL and expected a significant up-move after the earning announcement on Jan 18th, 2007. Instead of buying straight call, I opened a trade in the form of a call backspread. A typical backspread is usually done in a 1 x 2 fashion. In other words, buy twice as many options than you sell but you can always choose your own ratio. In this example, I sold 3 AAPL January 2007 $95 calls for $3.25 and bought 7 AAPL January 2007 100 calls for $1.18. This gave me a credit of $1.65 per backspread. The margins requirement was about $1365 per backspread. After placing this on 17th, I waited for announcement that was on 17th after market close. […]