18.8 C
New York
Sunday, May 26, 2024

Top Trades for Thu, 28 Jan 2016 10:20 – AAPL

0
Top Trades for Thu, 28 Jan 2016 10:20  – AAPL
psw-placeholder

AAPL/Maya – Hypothetically, that would knock about $15Bn off their earnings (at the 4th Q pace) so $40Bn in earnings assuming nothing else picks up.  That still easily supports $400Bn ($75/share) not including the $220Bn in cash ($37/share) they're sitting on.  

Of course, now that AAPL is at $93, we can go for a lower spread.  

In the STP, we sold 5 2018 $80 puts for $9 on 1/8 and, oddly enough, they are only $10 today.  No change there. 

In the LTP, we have the 2018 $100/130 bull call spread that we paid net $12.80 for and we sold the $95 puts for $14, now $17.34.  The $100 puts ($12.75) can be rolled to the $80 puts ($22.25) for $9.50 so let's do that AND buy back the $130 calls for $5 ($7 profit) and see how things go – it's only 10 so no big deal if we have to roll and DD later.  

As a new trade on AAPL, I'd sell the 2018 $90 puts for $15 and consider that FREE MONEY (because I REALLY want to own AAPL at $90) and buy the $80 ($22.25)/110 ($10) bull call spread for $12.25 and that's a net credit of $2.75 on the $30 spread that's $13 in the money.