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Dr. Terry Allen

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  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    I don't like selling deep in the money puts (or any options naked) because the margin requirement is so high that your return on investment is peanuts. And when the stock drops 100 points like it did this late spring you could lose a year's worth of short put premium.
    Sep 16 05:48 PM | 1 Like Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    There's a million ways you can trade these options. Using a short time horizon for the long side has some advantages, however. The ROI is higher when you are right (less money is tied up in the long side so more spreads can be put on) and bid-ask spreads are less with shorter-term options so better prices can be had on the trades.
    Sep 16 05:44 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    Good question - when we add new calendar spreads on Thursday or Friday the short side is usually in the following week rather than the week with only one or two days remaining.
    Sep 16 05:42 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    Yes, that was a typo - it should have said July 27. Thanks for reading so closely, and for letting me know.
    Sep 16 05:40 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    If you want to follow two portfolios that trade AAPL options I would suggest you sign up as a paid subscriber at terrystips.com - the basic cost covers two months of getting every trade made and weekly updates along with graphs like the article included. It is a small cost for an options education.
    Sep 16 05:37 PM | Likes Like |Link to Comment
  • How We Made 613% With Apple Options In 7 Weeks And Expect To Do It Again In 4 Months [View article]
    Our results can checked out - every statement is absolutely true. I can't promise future results will be similar. We were betting that AAPL would move higher, and it did. Options give you great leverage, so when you are right you can win big time. The opposite is true if you are wrong. Our portfolio lost substantial money when AAPL fell about $100 after the disappointing April earnings report, so if you are playing options you should be prepared for big swings both ways.
    Sep 16 05:34 PM | 1 Like Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    I am delighted that you, and thousands of others, feel that buying calls is a good idea. There needs to be someone who does it so my calendar-spread strategies work. There are hundreds of options strategy that can work for some people if carried out with discipline and good analysis of the underlying. Best of luck to you and your strategy.
    Sep 7 08:35 AM | Likes Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    Thanks for your comments. I totally agree with your thought that it is difficult to make these kinds of returns over time. I just believe the current situation in AAPL is unique and should be pounced on with the leverage that options give you.
    Sep 7 08:32 AM | 1 Like Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    You probably lost it on options because you bought them rather than selling them to someone else (which is what I advocate at TerrysTips.com).
    Sep 7 08:28 AM | 1 Like Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    I use options rather than buying stock, and actually have over 3000 equivalent shares of AAPL, and yes, I am a millionaire (and have given over $2 million away to Vermont charities) and trading options is how I got there. I would encourage you to study up on them.
    Sep 7 08:26 AM | 3 Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    I agree with you statement that as the strike price moves well away from the stock price, calendar spreads start losing money. That is why I take them off when the stock has made a big move and replace them with new calendar spreads which are at a strike closer to the new stock price.

    You can't just buy a calendar spread and then go to sleep for a month or two.
    Sep 4 03:50 PM | Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    Joe - My wife totally agrees with your stashing away some of the gains rather than doubling down with new investments. She reminds me of that nearly every day, and now I hear it from you, too.

    Probably a good idea.

    Thanks for sharing.

    Terry
    Sep 4 03:50 PM | 1 Like Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    Deep in-the-money options usually have a large bid-ask spread. You can usually get a decent price on AAPL options, however, by placing a limit order between those numbers. I often get spreads at the mid-way point between the bid and asked.

    Terry
    Sep 4 03:50 PM | Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    I buy these vertical spreads with the idea of hanging on to them until expiration, but you can always exit early if you wish. If the stock has fallen since you placed the spread, you probably won't get as much as you paid for it, but if the stock is the same, you can usually sell it for about what you paid.

    The first 600 - 650 verticals I bought cost me less than $24 and they could be sold for $32 right now even though they don't expire until January.
    Sep 4 03:50 PM | Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    I like your thinking. I don't like the naked sale of puts or calls for that reason, and also why I like to go out 6 months for the vertical spreads so that if it falls big time it will have lots of time to recover.
    Sep 4 03:50 PM | Likes Like |Link to Comment
More on AAPL by Dr. Terry Allen
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