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  • AAPL Technical analysis Credit Spreads (follow rules no trade) 1 comment
    Mar 31, 2011 12:52 PM | about stocks: AAPL

    AAPL trading in the middle current support and resistance.  One trade that looked interesting was a Bear call spread at $365 resistance areas and a Bull put spread at the $325 support area.   Creating a Iron condor on AAPL

    Would look to sell the May $365 Calls and buy the May $370 Calls for the bear call spread.  For the Bull put spread sell the May $325 Puts and buy the May $320 Puts. Creating an Iron condor for May on apple  

    • Credit of $280 to $285
    • 5 Dollar wide spreads
    • $5 – $2.80 = $2.20
    • Max loss = $215 to $220 (depending on fill price)
    • Break even Resistance of $367.80
    • Break even Support of $322.20
    • Margin required $220

    FOLLOWING MY RULES MOST PASS ON THIS TRADE – don’t enter any credit spreads on stocks 20 days before earnings. AAPL has earnings 4/19/11

    You have trading rules follow them, no matter how good a trade looks to you. Every rule you have in place needs to be well thought out and must be there for a reason.  So stick to them, this is part of being a disciplined traders.

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  • the Graduate
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    Very confusing post. Lacking several key verbs, pronouns and other parts of speech critical to comprehension. Not to mention the main thrust appears to be writer's suggestion that prudent investors avoid the trade he describes. Have headache now. Must find aspirin.
    31 Mar 2011, 10:38 PM Reply Like
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