It's been a great 5 week rally. Since I sold the AAPL $60 Jan '11 put option for $11.05 on Febuary 25th, it has depreciated dramatically. This option is now trading at under $6, and I felt I had to take the gains when sucking up almost half of the premium value for such a long-dated option in less than 2 months. I closed out my position at $5.95, leaving my gain at $510 minus $5.90 in commissions. Not bad for my first completed option trade. Maybe I might have the touch for trading options that I did for trading baseball cards in 3rd grade (took those chappaqua kids for a ride).
My portfolio is still very bullish on AAPL with my delta from my remaining AAPL option hovering around 20. If this rally were to reverse I think I will sell the $60 Jan '11 put again for anything above $9. I think I'm due for a long post referring to the research and fundamentals that has made me so bullish on AAPL. I also want to get some photos of the lovely card collection up here.
Disclosure: short AAPL $100 Jul '09 put
Monday, April 13, 2009
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