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Dr. Terry Allen

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  • A Remarkably Safe Way To Play The Apple Earnings Announcement [View article]
    I agree with you that they are the same as two calendars, as well as your experience with the other stocks. That why I emphasized that it would probably not work with using Feb options as the long side - IV will plummet for that series while it shouldn't for the April options.
    Jan 22 10:36 PM | 0 Likes Like |Link to Comment
  • A Remarkably Safe Way To Play The Apple Earnings Announcement [View article]
    I spent a lot of time checking out the strangle alternative, lower-strike puts and higher-strike calls rather than a straddles for the extra positions - it reduced the initial cost but did not deliver quite as much protection in the event of a huge move in the stock.
    Jan 21 10:33 PM | 1 Like Like |Link to Comment
  • The Perfect Options Play For The Apple Earnings Announcement? [View article]
    I only prefer puts for strikes below the stock price, and for the reason expressed in the article.
    Dec 23 04:10 PM | 0 Likes Like |Link to Comment
  • A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
    I hope you have been following my recommendation to buy puts Friday mornings and close them out near the close and do the same thing with calls on Mondays because every day since I wrote that article you could have made at least 50% on your investment.
    Dec 18 08:32 AM | 0 Likes Like |Link to Comment
  • A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
    Your last question certainly is an interesting one. The stock price does get bandied about by the option trading for sure, but bottom line, if the option players are bullish with their trades, the stock price should be pushed higher, and vice versa if the option traders are making bearish bets. One of the reasons that AAPL usually goes down on Fridays is that call writers are rolling over soon-to-expire calls and selling next-week Weeklys - if the market makers are buying those calls they will have to sell stock to balance out their risk level (they attempt to be neutral net delta at all times).
    Dec 18 12:20 AM | 1 Like Like |Link to Comment
  • A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
    Actually, you have it exactly backwards. The trade I made was a bullish one. The other side of that trade was most likely a market maker. That will make him bearish, and to balance out his risk, he will have to buy stock. That will push the price higher, not lower.
    Dec 18 12:15 AM | 1 Like Like |Link to Comment
  • A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
    Surely yours is a safer bet than mine but most of us don't have $40,000 is spare cash to collect the $110 you got from selling that put.
    Dec 17 03:41 PM | 1 Like Like |Link to Comment
  • A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
    Yes, a contract is for 100 shares but we are only dealing with the options so the numbers are $308 and $192.
    Dec 17 03:30 PM | 0 Likes Like |Link to Comment
  • A Simple Options Bet On Apple That Could Make 62% In One Month [View article]
    Only a little over $300 per spread since you take in almost $200 and the requirement is $500. Good luck to both of us.
    Dec 17 03:29 PM | 0 Likes Like |Link to Comment
  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    You got it right. Good luck. After today's gain I wish I had waited a day to sell, but that would not have been following my rules.
    Dec 11 10:45 PM | 0 Likes Like |Link to Comment
  • A Safer Way To Play Apple [View article]
    It would have been clearer if you had said annualized return. The actual return from that trade was the 3.244% number.
    Dec 11 02:04 PM | 0 Likes Like |Link to Comment
  • A Safer Way To Play Apple [View article]
    If you sell a naked put and collect $1622 you will need to post about $50,000 as a maintenance requirement. How do you calculate that is a 70% gain if it expires worthless?
    Dec 11 01:35 PM | 0 Likes Like |Link to Comment
  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    I am sorry I did not make it clear that the puts you buy on Friday will expire that day and the calls will expire a week from that day. By the way, today AAPL opened up down sharply and since I expected an up day, I bought 520 calls for $14 shortly after the open and placed an order to sell them at $20 which executed about an hour and a half later, so I took off the rest of the day with a nice gain.
    Dec 10 04:47 PM | 0 Likes Like |Link to Comment
  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    If you own a 530 call on Jan 2014 and the stock is trading at $700, your call should be worth $170 (maybe more if it hasn't expired yet). I hope you are right.
    Dec 10 03:30 PM | 0 Likes Like |Link to Comment
  • Play Apple Volatility With A Unique Weekly Options Strategy [View article]
    Downticks on Fridays and upticks on Mondays seems to have been the predominant case even before the recent downtrend, but who knows if it will continue forever. If the explanation is actually with call-writers selling calls on Fridays, the trend should continue in an up market as well.
    Dec 10 03:28 PM | 0 Likes Like |Link to Comment
More on AAPL by Dr. Terry Allen
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