CheapIV.com

AAPL-2 JAN 2011

admin on 12 30, 2010

Back to Portfolio

Business Summary

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California

[private_SwingCreditTrader]

1/3 Taking off put spread as the stock has really jammed into the new year. Closing whole trade out for $0.73 in only a couple of days.

12/31, thestock has fallen off nicely in two days, so we are taking off upside call spread, because it seems that is where the stock wants to go with this market.

12/29 AAPL With AAPL stock price near resistance and implied volatilities near the highs this is a great place to re establish the AAPL Iron condor.  We can use the recent resistance areas as stops.  Our target is for AAPL to pull back to the 320 level.  By selling the total Iron Condor package vs just selling the short call spread we can collect a little more premium against the highs.  AAPL did announce that they may be shipping a new IPAD earlier than expected so this may be bullish for the stock.

We can take in $6.81 for the 300-310-320-330 Iron Condor in January.  This gives us $3.19 of risk for each spread that we have on.  If implied volatilities come in then this should help our spread.  We also have year end mark up and the New Year repositioning to contend with by adding this trade.

CLOSING CHART

[/private_SwingCreditTrader]