The AAPL butterfly spreads we held were gaining steadily in value, but I suggested bailing out of them for a small gain nonetheless because the 7-for-1 stock split was going to leave us with June options bearing weird strikes and a possible liquidity problem. The split has also cast into doubt our original 660.26 rally target, since the post-split charts contain adjusted ABC high and low coordinates that are not natural highs and lows. Our target equates to 94.32, but as you can see, the split-adjusted chart suggests the stock is on its way to 97.12. That target is playable, but not with the same leverage we got with the butterfly spreads. For now, let’s see how AAPL moves before we take another plunge.
