An option spread in AAPL that even beginners cam do

12:31

  Rick

With expectations of AAPL falling to 203.43 over the next 4-6 days (see my 11:30 post), here’s an option spread that even beginners can do with very low risk: Bid 1.30 for the 4 Oct / 20 Sep 202.50 call spread, day order. This is a good opportunity to observe how these spreads work. I will advise if the stock drops below 202.50, since that would expose you to the exercise of the Sep calls you are short. Expert traders can attempt to leg into the spread for less, but this will be difficulty because the calls are deep in the money and don’t trade in quantity.