Hmm, What Is Apple Doing?


#2150

Many possible short puts, very safe :joy:

Short put(Jun 21 2019 $185) @ $5.30
Short put(Jan 17 2020 $190) @ $10.60
Short put(Jun 19 2020 $195) @ $14.75
Short put(Jan 15 2021 $200) @ $18.75

Let say you decided to short put (Jun 19’20), if on OE, AAPL is above $195 you get to keep the premium of $14.75 per share i.e. annualized return of 4.8%. If below $195, you get assigned AAPL @ $180.

Best is no need to pay margin interest :smile:


#2151

Shorting or using puts on Fundamentally good stocks, esp good results after new iphone release, will results loosing position.

This is the time to go buying spree like Thanksgiving sale on stocks this week, next week, but not a time to play with puts or shorts.


#2152

Short put is a bullish bet :smile:


#2153

Is it selling put? I do not understand.


#2154

Short means sell.
Short put means sell put.
Sell put is ridiculously safeπŸ˜€


#2155

One more thing, we normally short puts when IV is very high e.g. last Friday sudden big drop.

The psychology of shorting put instead of long underlying is you are bullish but not sure whether AAPL has bottomed and feel it might drop to $180. Otherwise you should long underlying immediately.

Frankly the chance of AAPL trading below $220 by Jun 2019 is not high, hence I would be willing to short put (Jun 21 2019 $220) for $16, yielding 10.5% p.a. return if AAPL is trading higher than $220 or assigned at $204 which I feel is very good price.


#2156

If you do a short put and the stock goes up a lot, can you close the position to lock in the gain?


#2157

Obviously.
Frankly short put is ultra conservative and hence have pretty low return.
Is really a bad choice if the stock rallies very fast.


#2158

Better deal today.
Short put(Jun 21 2019 $185) @ $6.65
Short put(Jan 17 2020 $190) @ $12.20
Short put(Jun 19 2020 $195) @ $16.00
Short put(Jan 15 2021 $200) @ $20.00

Short put(Jun 21 2019 $220) @ $19.25 :slight_smile: yield 12.8% if trade above $220 on Jun 21 2019 or assigned for $200.75 :slight_smile:


#2159

3rd chance came so fast, may be should be lower at $205. That would make short puts then very lucrative.


#2160

Amazingly the word :tv: still in use :unamused:


#2161

Apple Signs $600 Million Deal With Dialog for Assets, Staff

https://www.bloomberg.com/news/articles/2018-10-11/apple-signs-600-million-deal-with-dialog-semi-for-assets-staff?srnd=technology-vp


#2162

#2163

Apple’s iPhone Customer Loyalty Is on the Rise

Apparently Harriet is an odd ball.


#2164

All it means is I am open minded enough to try new things.