Wednesday, July 22, 2009

Figured Out What to Do

Holding onto the short 140 AAPL put until October would have been painful if AAPL continued upward.  Instead of rolling up the position (premiums are low right now), I basically closed out my gains by buying a $200 January 2010 AAPL call for $2.96.  I will hold onto the 140 put until expiration, which is now trading for $3.25.  This way if AAPL goes up I don't mind, and if it goes down I don't mind buying in at 140, especially after the great earnings yesterday.

I'm hoping for a great Chipotle earnings tonight.

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