Stock / Symbol: Apple Inc / AAPL
Option Strategy: diagonal call spread
Trade entry date / price: Jan 23 / $555
Price at trade post: $527.60
Current Position: [private_monthly]
Long 2 AAPL 10(Mini) Jan15 525 calls
Short -1 AAPL 10(Mini) Mar14 525 call
at a net cost of $41.31 per mini contract
[/private_monthly]
Reasoning: Although AAPL is down 5% since we first put this trade on, we're actually just slightly up at this point. In addition to our short call being in the money, I'd like to exit this trade here to step out of the way of the negative theta tied to our long calls.
Closing Trade Details:[private_monthly]
STC 2 AAPL 10(Mini) Jan15 525 calls
for a min net credit of $42.25 (or the mid less $.10) (day order, limit order). The mid is currently at 43.05
then,
BTC -1 AAPL 10(Mini) Mar14 525 call
at the current intrinsic value + 0.15. For example, with AAPL at 527.6, the intrinsic value is $2.60 (day order, limit order)
[/private_monthly]
Max Risk: $750 (reduced from $980)
Max Reward: unlimited over $580 by Mar 21
Profit Range: $580+ by Mar 21
Suggested Downside stop: @ $515
Suggested Upside stop: NA
Realized profit / loss upon fill: $10
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