{"id":22,"date":"2010-04-21T21:03:53","date_gmt":"2010-04-21T21:03:53","guid":{"rendered":"http:\/\/www.cheapiv.com\/?p=22"},"modified":"2010-04-27T01:42:19","modified_gmt":"2010-04-27T01:42:19","slug":"apol-cheap-iv","status":"publish","type":"post","link":"http:\/\/www.cheapiv.com\/?p=22","title":{"rendered":"APOL – Cheap IV"},"content":{"rendered":"

\"Apollo<\/a><\/p>\n

4\/21\/2010<\/p>\n

APOL (Apollo Group, Inc.)<\/p>\n

The stock has made a nice rebound off of its recent lows at the end of March around $61.\u00c2\u00a0 Today it took out its high in mid March of $65.69. Volatility is currently on its lows after earnings on 3\/29.<\/p>\n

Targets \/ Stops <\/strong>[private_free]<\/p>\n

This clears the way for the stock to mover higher to fill the gap after it dropped in Oct09.\u00c2\u00a0 The low from the top of the gap is $72.16.\u00c2\u00a0 This provides us a nice target of roughly $7.\u00c2\u00a0 Stops are a little harder to come by on the chart.\u00c2\u00a0 On 4\/20 the low was $63.4, if the price dropped below here it would mean further retests down to 62 area.\u00c2\u00a0 Getting down to $63.4 would cut the cost of our atm options in half.[\/private_free]<\/p>\n

Trade<\/strong>[private_free]<\/p>\n

We are going to be a little aggressive here in the option that we buy because even though the vol is relatively low compared to itself, it is still around 30% on a $65 stock.\u00c2\u00a0 We are also going to be aggressive on the timing of this one, if it does not happen quickly, then we want to get out.\u00c2\u00a0 If we do not see a continuation through Friday then we are done as well.\u00c2\u00a0 For this trade we are going long the ATM May 65 calls $2.60.\u00c2\u00a0 It is high decay position but as long as the stock continues to breakout we could get a nice pop.[\/private_free]<\/p>\n

Exit [private_free]<\/strong><\/p>\n

4\/22\/2009<\/strong><\/p>\n

APOL had a quick pop here this morning with the market down pretty big.\u00c2\u00a0 We just had a failed retest in the stock price reaching $66.5.\u00c2\u00a0 That is basically up $0.90 from where we got in.\u00c2\u00a0 The options are now bid $2.9.\u00c2\u00a0 We are taking our quick gain here, for the fear that this can not hold up given that the market is down.\u00c2\u00a0 We will look to reload later…if all is well.\u00c2\u00a0 A quick $0.30 profit never made anyone go broke.[\/private_free]<\/p>\n

REGISTER FOR FREE MEMBERSHIP<\/strong><\/p>\n

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4\/21\/2010 APOL (Apollo Group, Inc.) The stock has made a nice rebound off of its recent lows at the end of March around $61.\u00c2\u00a0 Today it took out its high in mid March of $65.69. Volatility is currently on its lows after earnings on 3\/29. Targets \/ Stops [private_free] This clears the way for the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[13,8,12,10],"class_list":["post-22","post","type-post","status-publish","format-standard","hentry","category-cheap-iv","tag-calls","tag-options","tag-strategy","tag-volatility"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/22","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/22\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}