AAPL Earnings this Tuesday - 580/600/620 Weekly Butterfly only $3.50

Quote from diaoptions:

AAPL @ $570.00 during AH trading, looking for a bounce to >$583 by Friday - with 3 trading days left that is possible. I will update later on in the week.

:)
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Risked $295 to make $5. Sweet.
 
Quote from cdcaveman:

so based on your criticism .. you have some wonderfully better trade on?
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Have been short bulk 2013 for more than one year.

Sold Aug 575p $15 vs 578.80 today. Covered 2/3rds via straddle @ 26.55-27.00 Will ride the balance.
 
I lost 70-80 dollars on spreads cumulatively. The credit spread I bought back at a profit and the butterfly was a wash.. I trade two accounts.. not a big deal both average to a good risk reward. Sometimes you lose..
 
Quote from arbs-r-us:

Have been short bulk 2013 for more than one year.

Sold Aug 575p $15 vs 578.80 today. Covered 2/3rds via straddle @ 26.55-27.00 Will ride the balance.
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That's not clear. Short premium? Short as far as direction? Your long a straddle covering your short put? I haven't figured out how to play earnings. So I keep my bets really small and limit my risk
 
Quote from diaoptions:
07-24-12 03:16 PM

AAPL 580/600/620 Weekly Butterfly only $2.95
  • AAPL at $599.42
  • Buy 1 580 Call @ $29.05
  • Sell 2 600 Calls @ $16.90 x 2 = $33.80
  • Buy 1 620 call @ $7.70
  • Total Debit $2.95
  • Maximum loss $295.00, maximum gain $1,705.00
Maximum loss if AAPL is <$580 or >$620, maximum gain if AAPL is at $600 this Friday at expiry.


:)
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AAPL @ 579.23
P/L $44.00

Screenshot-4.png


:)
 
Quote from cdcaveman:

That's not clear. Short premium? Short as far as direction? Your long a straddle covering your short put? I haven't figured out how to play earnings. So I keep my bets really small and limit my risk
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Yes, 2013 is short premium, bias long delta and short put skew. This requires significant capital. The Aug trade was a synthetic straddle closed out by an actual straddle. Leaves one in a reversal.
 
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