Finally able to write again….
It’s hard to believe that my last post was 5 months ago, but it was! My wife and I were building a house and it became crunch time. If you’ve never built a custom home – there is only one way to do it. You just have to be there — as much as possible. The house is done and we are living in it now. My new office is still a pile of boxes, but I have a temporary desk that is workable enough to get me back to work — because in the world of options, there is always money to be made!
Somehow, even though I wasn’t able to write, I was able to make time for trading. My Apple options trades continued, and I’m now up about $10,000 on AAPL for the year and up about $1100 on WalMart for the year. Obviously, I continued to actively trade Apple during the move, and did not hold a position in Walmart for most of that time. Now, I have positions in both and you can begin to follow along again.
The trade on Apple is stunningly simple and as long as it works, I will keep on doing it the same way. Apple is in a bullish pattern right now, so the bias is to the upside. However, the stock doesn’t move up every day. I have been waiting for days when Apple is down. Usually this is because some idiot has said something negative about some Apple product which has caused the market to panic and sell. On down days, I will carefully sell a put. I have done this recently as the stock moved off it’s highs from about 103 down to 98 or so. I have built a position by selling one put at a time and am now short six Oct2 (next week) puts and also short two 100 calls expiring tomorrow. Delta (DIA weighted) is 215 and daily time decay (Theta) is about $59. Tomorrow I’ll pay attention to the short calls that expire.
The WalMart position is short three 76 puts expiring tomorrow. They were sold earlier today for .21, .24 & .27 for an average price of 24 cents each. As we near the close today, they are priced at 17 cents. I will leave them alone until tomorrow when I can see if they will expire or need to be rolled etc.
It’s good to be back. Stay optioned, my friend!