Members Trade Alert: $AAPL Sold March 100/110 Call Spread @ $9.40 | Bought July 100/110 @ $8.10



BotTrigger Trade Alert: $AAPL Sold March 100/110 call spread @ $9.40 & then immediately rotated that capital into buying the July 100/110 @ $8.10. So total gain on the March 100/110 spread was 88% on this last trade. Since the cap was $10 we only had about $.60 cents of upside travel on that position which is only abt +6% left. We've decided to let this go early since we've nearly reached full value & we can better hedge against downside & upside risk in a more versatile call-spread that's better positioned to weather a pullback & give us more runway on potential gains beyond what the March positions can do at this point. The July spread @ $8.10 does that for us as it's cheaper & has a potential upside of abt +23% if AAPL is at $110 or higher by July. Also, the July spread is better hedged against any potential downside risk on earnings, since a pullback on earnings would hit the March position harder than the July spread. Remember, the July spread is merely a "placement holder" for us to rotate into a higher yielding more aggressive call spread once we get extreme oversold readings on AAPL. We are at all time quarter highs right now on AAPL so taking aggressive positions here is not the time do so. For example, the 110/130 is currently going for about $10 which is a 100% gain if AAPL closes at $130 by July. We're going to wait for the next pullback as it's always been the case that's where the most valuable opportunities happen. Even if AAPL rallied to $130 & pulled back to $120...then that's where we'd be buying.


Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”