Seeking Alpha
  • reddykvm
    LONG 4 AAPL Jan 19 '13 $600 Call Up 170% so far, Any suggestions should I keep riding this until expiration or sell it now?
    9/18/12
    Reply (9)
    • Canary Cash: you could perhaps sell covered calls against it :)
      9/18/12
    • Canary Cash: investigate when premiums are best for monthly/weeklies, and what works best for you (i.e. where you are happy to have it called away at)
      9/18/12
    • reddykvm: I am new to this options... that was the first trade I made!!! I would like a few examples of trades I can make
      9/18/12
    • pocohonta: Canary Cash's suggestion (it's a spread, not covered call) is good, but never let your long calls to ever be called away by the short calls
      9/18/12
    • pocohonta: Your $600 T's are deep ITM w/delta=0.81 & simulates 320 AAPL. If you are cautiously optimistic, then sell it & buy 6 ATM calls w/delta=.5
      9/18/12
    • Ocean Man: I totally agree. Roll to the 700s - similar upside and $27,000 less downside.
      9/18/12
    • Leont68: So both of you are suggesting him to take the profit? I am also new just trying to see exactly what is being suggested here.
      9/20/12
    • Ocean Man: Yes, no need to have calls that deep in the money. You can have the same bet with less downside on a higher strike.
      9/20/12
    • Canary Cash: Agree with OM & Pocohonta, rolling is a better option here, doing what I said would be preferred if done from the outset and managed
      9/20/12