PLAY: Sell your AAPL October 380 Calls (O:AAPL 11J380.00) on any move above $13.00, good for the day.
Dear Bottarelli Research Member,
It’s been quite a week at Apple (AAPL – NASDAQ). As you can see, we’ve just seen a range between $420 and $350. The way it reacted yesterday, you’d think the company was going out of business. But in reality, they launched a new product and continue to dominate the world with their industry-leading products. As a result, this dip continues to look like a great buying opportunity. For example, J.P. Morgan reiterated their “overweight” view with a $525 price target. How’s that for a massive upside call?
But when it comes to our AAPL October 380 Calls (O:AAPL 11J380.00), the smart move here is to sell into the pop and come out of the entire play unharmed. After a wonderful addition yesterday, our break-even price is $13.00. After another intra-day recovery, that’s exactly where these calls are trading right now. Considering where we’ve been with this play, I think the smart move is to use any pop above our break-even price of $13.00 to exit the position. That way, we don’t lose any trading capital in the midst of these massive intra-day price swings and we can then watch the aftermath safely from the sidelines. On that note, here’s the play…
PLAY: Sell your AAPL October 380 Calls (O:AAPL 11J380.00) on any move above $13.00, good for the day.
And as always…
Lock and load!
Sincerely,
