IC Trading on AAPL

Posted by Law Trader on August 17, 2010 (01:24AM)

So, a few of you know that I prefer the deep out-of-the-money IC trades for a steady 10-15% month return.  My latest trade has been with AAPL (Apple) with a condor leg of 300/310, 200/190.  I cleaned up with a nice IV crush due to earnings and little movement in the underlying.  I decided to roll my position out a couple of expiration dates.  I'm curently holding 39 K's at 230/220 and 300/310, respectively, with a Sept. expiration.  Theta is starting make a presence, and while the underlying has fluctuated, my position has been stable. 

On another note, I just graduated from law school and took the Florida Bar Exam in July.  My Fiance and I are taking a trip to Italy next month and I couldn't be happier.   

Posted by Law Trader on August 23, 2010 (03:40PM)

I decided to roll down my call leg from 300/310 to 270/280.  While this does present some significant risk, I'm counting on AAPL to trade flat for a while and capture some theta/IV premium.  I am bullish on AAPL in the intermediate to long term, and if the underlying gets too close to my call leg I can always roll it out a little further to mitigate any loss that I might otherwise incur.

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