Stock / Symbol: Apple Inc / AAPL
Option Strategy: [private_monthly]calendar put spread[/private_monthly]
Price at trade post: $94.18
Reasoning: Coming into this afternoon's earnings annuoncement, I'm going to bet that Samsung has eaten into Apple's iphone revenues and Google/Samsung into Apple's tablet revenues. Not risking much here as we could just as easily see a positive earnings announcement. This trade has a delta of -3.75, a positive theta of 10.5 and a positive vega of 2.9. Please note that I'm using weekly options on both legs of the trade.
Trade Details:[private_monthly]
BTO 2 AAPL AugWk1 87 puts
STO -2 AAPL JulWk4 87 puts
for a max net debit of $0.18 per contract (day order, limit order). The mid is currently at $0.15.
Requirements:
Cost/Proceeds $32
Total Requirements $32
Estimated Commission $6
[/private_monthly]
Max Risk: $32
Max Reward: $300 or 900% (at current volatility level) [private_monthly] at $87 by Jul 25
Profit Range: $82 to $92 by Jul 25[/private_monthly]
Suggested Downside stop: NA
Suggested Upside stop: NA
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