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Top Trades for Wed, 06 Jan 2016 09:55 – CMG, AAPL

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Top Trades for Wed, 06 Jan 2016 09:55 – CMG, AAPL
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Going to execute 10 short AAPL 2018 $95 puts at $14 ($14,000 credit) – close enough to our $15 goal for the LTP!  

 

Ah, there's nothing like starting a day by selling $14,000 worth of short puts you have no fear of being assigned…

$450 is the -40% line on CMG – time to get aggressive there, too:

We have the March $530 calls, now $6 and we sold the $570s, now $4 but let's take advantage and sell 10 Jan $340 puts for $22.50 and buy 10 Jan $450 calls for $62.50 and sell 10 Jan $560 calls for $26 (there are no $550s) in the STP.  

That's net $14 ($14,000 on 10) on the $110 spread that will pay a profit of $96,000 if CMG is back at $560 next Jan.  Worst case is having 1,000 CMG assigned at net $354 ($340 + the $14 cash) and ToS says net margin on the puts is $34,000, so fairly margin-efficient.