AAPL Ratio Spread

fAfter closing out my short 300/310 call spread for a loss and analyzing the trade more, I just felt this stock had a destiny with $300 and IV was historically low so felt like being long made more sense but didn't want to take the risk of being wrong. I didn't want to pay the $6 premium for those calls, so I bought (2)300 calls and sold (4)310 for a net of $1.05. My hope was that it stayed in its uptrend channel and I could get out for a profit before expiration. But I didn't lose anything on the trade until the $320 strike so really wasn't concerned. But of course as soon as I put the trade on the stock tanks almost $20. It was meant to be a lotto ticket type play with a net debit of $210 and average possible payout of $1000 between the 305-315 strikes. So I just hung on and was able to get out for a small profit today of $300. I closed at about $301.50 intra-day. I felt that with only 2.5 days to go the likelihood of pinning near $300 was great and that would be a loss for me so I took what I could get.

Below was the risk analysis just after I closed the trade earlier today. I had to recreate the trade and prices since it was already closed out. The trade has a lot of potential profit it it goes higher the next two days, but could be and was a complete loser as of yesterday, so just felt prudent to take something rather than nothing.

With an hour left to go on OPEX here is the current risk analysis.

Comments

WOW! I think that sums it up

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