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  • Will You Trade Apple Earnings Like Warren Buffett Traded Burlington Northern? [View article]
    Thanks gizmofish.

    Weeklies have different risk/reward profile when compared with monthlies so depending upon what you are looking for, you can structure a trade around either on weeklies alone or in combination with monthlies.
    Apr 25 12:04 AM | Likes Like |Link to Comment
  • Will You Trade Apple Earnings Like Warren Buffett Traded Burlington Northern? [View article]
    Dear John, Thank you for the comment.

    The Article is published 2 trading days after I submitted to SA ...short was the opinion when it was written...Separately As I mentioned at the very beginning of the this post, I am neither short nor long, I trade delta neutral and that's how I played this earning announcement as well...
    Apr 24 04:50 PM | Likes Like |Link to Comment
  • The Cautious Ways To Trade Apple's Earnings [View article]
    To Build upon Kim's point-

    Jan 13, 600s calls IV is currently ~36%; And at this level, your volatility exposure is almost $200/contract for every 1% drop in IV.

    IV might come down to 30-32% post earnings. regardless of the direction AAPL goes.

    If you are bullish, you could convert your calls into a 600/700 bull call spread (2x for each 600 Call you were planning to hold). Your upside will be slightly less vs 600 call but your volatility exposure will be reduced significantly.

    Your stop-loss may not work in case AAPL gaps down dramatically lower.
    Apr 23 01:52 PM | Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    Dear Warren and soleprop, Thank you for your comments. With due to respect to your views on affordability, may I ask when was the last time you visited (not as a tourist) or stayed in Asia? Do you know which are the biggest markets for Vertu? the biggest markets for Diamonds? The two biggest consumer of Gold? The 2nd biggest market for precious Art (and soon to the biggest)? The Biggest market for Louis Vuitton (and some more)?

    I am not mentioning these to underestimate any other economy but to bring a perspective on Asian economy so you could evaluate some future investments to ride on those trends.

    Do you think NOKIA launched Lumia 900 in the USA to take on Apple? You may want to think a little differently for a moment. Nokia is worried about their current winning turfs (aka developing markets) where Apple is just beginning. NOKIA can hear the roar, is scared of those "queues" and sold-outs.... US still matters and will continue to matter for a long time to come and thus even a small win in the USA will give Nokia a halo effect to launch and leverage in other markets..

    Bottomline, Apple is a phenomenon of current life time. If it continues the way it has done in the last 10years, $1trillion market cap is not really that far...
    Apr 22 11:40 PM | Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    Any strategy (or trade for that matter) has risk/reward associated with it. Option Expiration day offers some amazing opportunities. If your assessment about the underlying turns out to be accurate, the returns on this day can be mind-boggling.

    On other hand, if your assessment is incorrect, losses can easily wipe out your trading capital.

    Thus, it is important to have a clear mind set of what you want, to know consequences beforehand and then to jump with a clear trading plan.
    Apr 22 10:27 PM | Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    Which OTM strike price?
    Apr 21 02:51 AM | Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    @Bmgue12

    Here is a simple 1:1-
    1) Call makes money when stock goes up
    2) Put makes money when stock goes down

    You are absolutely correct that one of the side will lose money. So one needs to trade with a plan-> a) when to buy, b) which strikes to buy, c) how to buy and d) how not to lose money

    Take an example of a trade for OPNewsletter subscribers (http://bit.ly/JtQr4e) - I mentioned to buy Apr 600 call options (expired yesterday) and Apr 580 put options, the cost was $1.60. You need to assume 100% loss upfront because there is only few hrs of time value..... once you are comfortable with the risk...enter/exit based on your plan....by the end of the day calls were worthless but the puts were worth almost $7, thus making ($7.00-$1.60)/$1.60 ~300+%

    of course, I don't expect to hold such positions till closing bell, so we continued to take profit....we did the same on CMG as well...

    Having said that, if stock didn't move...it would have been a 100% loss..
    Apr 21 02:49 AM | 2 Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    Thank you...remurraymd

    yes ..CSP is an excellent strategy...especially when one wants to get long but at a discounted price...I am glad it's been working for you...

    For those who do not understand "Cash Secured Put" (CSP) strategy...here is 1 2 3-

    1) you decide at what price you would like to buy AAPL shares, 2) allocate equivalent capital,
    3) Instead of buying shares you sell puts of that strike...you get shares at Cost Price= Strike price - Premium received....buying it even cheaper than your desired price

    This assumes you are willing to buy shares at that price and ready to take risk of holding position till expiration of that strike. My friend Bill just authored a good piece on this - http://seekingalpha.co...
    Apr 21 02:29 AM | 2 Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    Thank you Kim. I sincerely appreciate your kind words.
    Apr 21 02:14 AM | 2 Likes Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    please see attached, this is what I sent to OPNewsletter subscribers -> http://bit.ly/JtQr4e

    This was done via a strangle strategy, which means I am LONG as well as SHORT at the same time. SA authors need to choose either a) Short or b) Long. There is no 3rd option i.e. Delta neutral, I chose SHORT because I was bearishly biased at the time of writing this article.

    Directionally, I trade mostly for the day and then I am out. I can be both bullish and bearish at the same time via my delta neutral approach.

    So After Friday close what position do I hold? Delta Neutral with minor bullish bias. I am not waiting for Tuesday. I am neither short nor long but I am in the trade, for now.
    Apr 20 11:00 PM | 1 Like Like |Link to Comment
  • Don't Trade Apple Earnings Without Reading This First [View article]
    Thank you for taking time to write comments. I appreciate it. My apologies regarding the typo error (that was original company name though). Once an article is published on SA, the author can't edit it.

    Pls don't consider typo error as a symbol of ego, I am a full time trader and if this were to show anything, in all honesty this typo just means that I have less time available.

    Yes, I was short Apple via 580/600 strangle. Here is a screenshot of my last trade that I sent to OPNewsletter subscribers-> http://bit.ly/JtQr4e, the trade was +100 to 300% winner (pls check my twitter stream-> http://bit.ly/JVkcaQ)

    Thank you again.
    Have a great weekend.
    Apr 20 10:18 PM | 3 Likes Like |Link to Comment
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