Bat coming off the shoulder

Now we’re starting to get some pitches that I want to swing at as we start to re-build our longs. I also want to go ahead and sell the remainder of my APOL puts which expire this month so that I can “roll them down” and buy some longer-dated puts with lower strike prices for a fraction of the value that my existing puts have right now. I paid under a buck for these puts and am selling the last of them for nearly $9. I’m going to buy half as many puts to replace the puts I’m selling. I’m looking at the January 2013 Apollo puts with $35 or less strike price. I’ll end up paying about $3-4 for the puts I’ll buy and since I’m selling the May Apollo puts with the $42 strikes that I bought a few months ago (see: Buying some puts in this name) for $9, I’ll be locking in a bunch of profits and will have a good bit of cash from the sell.

Anyway, I’m also looking to buy some of the shares of Apple that I sold when we blasted through $600 a share back today, I’m going to start with some common stock but I might consider buying some longer-dated, out-of-the-money calls in Apple before the day is over depending on how far it falls intraday and what prices the calls are going for.

For the last few weeks, as I sold and trimmed and then mostly sat on my hands, I’ve told you guys at the highs and for the first part of this pullback that we would soon see new pitches worth swinging at. I am definitely warming up to these prices and as you can see, I’m starting to swing the bat.