AAPL Technical analysis Credit Spreads (follow rules no trade)

Mar. 31, 2011 12:52 PM ETAAPL1 Comment
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Contributor Since 2011

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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