AAPL Bull Put Credit Spread

Looking at placing a Bull Put Credit Spread below 160on Apple (AAPL). A May 150/155 for more than .30.

AAPL  is peaking out at resistance of 180, MACD and Slow Stochs are still bullish, and there is a support at 160.  At .30 the trade will net a 6% gain as long as AAPL does not drop below 160 in the next two weeks. It is a more risking credit spread than what I normally suggest but still worth a look.

To place the trade I would wait a little in the morning and see how the market and this stock plays out. I would be looking for a drop which may increase volatility, which in turn will raise the premium values and the put prices making it easier to gain a little bit more on the credit say around .40. However if the market really decides to make a nose dive then follow the first rule of option playing - do not go against the market.

Other Recent Opinion on AAPL…
Next-gen iPhones to be cheaper from AT&T

Apple Computers Credit Spread
AAPL, Earnings, and what’s next…

AAPL, bull put spread, credit spread

Trading Options Links

I have found the most comprehensive and useful list of links for option traders. It is from the blog - Stock Market to the Minute. It is full of links from Indicators to Research and everything in between - Check it out here —> Useful Links

It is an excellent list - good job!

option strategies, option trading, useful links

Superior Investor and Option Trading

Well I’m Back!! Back to posting on Superior Investor that is. I will most likely spend my time in the Option Trading forum part of the Forums. In fact I just posted something there just now, wanting to know who is actively trading options and what option strategies they are using…Actively trading options?

So be sure to check out Superior Investor and participate you might learn something.

option strategies, option trading

Option Spreads on the Option Insider

Found another website with a good explanation of option spreads called the Option Insider

I really like his explanation on how to remember what to sell and what to buy when trading spreads. It is easy to remember and something i never thought of…

The risk/reward characteristics of the spread will depend on the price and the strike prices of the options you buy and the options you write. You have all heard “buy low, sell high if you are bullish.” This adage can help you remember how to structure your spreads.

Bullish: Buy Low and Sell High. In a bull spread, the investor simultaneously buys the lower strike call (or put), and sells the higher strike call (or put).
Bearish: Buy High and Sell Low. In a bear spread, the investor simultaneously buys the higher strike call (or put) and sells the lower strike call (or put).

The site is very well done. It still has option jargon that is difficult to understand for the newbie but even on my blog here the same thing applies. We can’t always cater to the newbie, at some point in time you are just going to have to learn the language of options if you want to learn how to trade them properly.

For those of you with trouble learning the jargon I will recommend - Investopedia for all your answers. Just type in the word you do not understand into the search function at the top of the site, hit enter, and it will spit a list of possibilities of answers.

Back to the Option Insider - he has a three part series going on giving a good basic overview on trading option spreads and the differences and similarities between credit spreads and debit spreads. Good blog - Check it out —> Option Insider

credit spreads, debit spreads, option spreads

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