Actionable Trade-Alert
from Rick in the Trading Room
(Please check all related discussion in the room before you do any trades.)
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20:29 |
How many of you did the AAPL call calendar spread: Buy Oct 4 202.50 calls/sell Sep 20 202.50 calls for a 1.30 debit? If so, I would suggest exiting it this morning, on a spread order, for 1.00, with 0.10 discretion. The spread closed at 1.00 today, and although it’s still possible to make money on the position, even if the stock goes higher, I’d rather not subject you to early-assignment risk; or try to postpone it by rolling the short Sep 20 calls to Sep 27. It was a lousy position to begin with, inferior to simply buying the 202.50 put calendar spread for cheap, as Entisas and Baplg figured out. If you exit with a loss, please report it in the chat room so that I’ll have a better idea how much interestt my option recommendations are attracting. |
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