I had contemplated the same debit IC. That is why I opted to go with the 70 calls rather than ITM. I thought I might be able to catch a little bit of upside movement toward the middle of the range before I open the rest of the it.
Vertical Spreads for Aggressive Growth
- Thread starter Cache Landing
- Start date
I had contemplated the same debit IC. That is why I opted to go with the 70 calls rather than ITM. I thought I might be able to catch a little bit of upside movement toward the middle of the range before I open the rest of the it.
Everyone seems bullish on AAPL except cnms...what does he know that I don't?
Are you expecting a move in the short term? The 70 call is very aggressive...but commensurate with your Journal title!
70 strike have deltas of approx .26 right now. Probably would have gone with the 67.5 (.39 deltas) myself - but that's just a personal preference.
I'll try and explain my reasoning in the interest of education and discussion:
The 70 call is going to need a move sooner rather than later for a payoff worthwhile, perhaps that is your forecast. The 67.5 has a bit more time to be right and still has the benefit of upside gamma.
Also, the call skew seems to be favoring the 67.5s over the 70s but there's not much in it if anything.
I would submit my reasoning for strike selection holds whether you are playing it as a single leg or as an anchor for building a position.
BTW, building positions in this manner starting off with a directional bet a la Cottle is a large part of my personal trading. Secret is out!
MoMoney.
Are you expecting a move in the short term? The 70 call is very aggressive...but commensurate with your Journal title!
70 strike have deltas of approx .26 right now. Probably would have gone with the 67.5 (.39 deltas) myself - but that's just a personal preference.
I'll try and explain my reasoning in the interest of education and discussion:
The 70 call is going to need a move sooner rather than later for a payoff worthwhile, perhaps that is your forecast. The 67.5 has a bit more time to be right and still has the benefit of upside gamma.
Also, the call skew seems to be favoring the 67.5s over the 70s but there's not much in it if anything.
I would submit my reasoning for strike selection holds whether you are playing it as a single leg or as an anchor for building a position.
BTW, building positions in this manner starting off with a directional bet a la Cottle is a large part of my personal trading. Secret is out!
MoMoney.
I was short AAPL but I closed it two days ago (now it seems I exited it prematurely; I thought I've seen a flaw in the downtrend). So far I don't see signs of an upwards reversal. I'm on the sidelines.
Yes, your channel certainly looks compelling.
Yes, my forecast is an upward move sooner rather than later (back to the middle of the range within the next week) The call skew didn't seem to make that much difference and like I said before, I was already looking for the JUN 70/72.5 bull call. I decided to leg into it this time given my bullish outlook.
Yes, it's a good part of my personal trading too, but don't worry I think we are the only two that noticed these posts.
I don't need 5-points. 2-points would be fine, 3-points would be great.
Quote from rallymode:
i noticed too, you guys are now jinxed
Well Mo, time to find a new strategy.
