Two option trades for Txgiving week
It’s Thanksgiving week and that’s reason enough to not be pushing it too hard, but given how much cash we raised near the highs and with the crushing the markets have taken again today, there’s a trade or two that I’m doing from my smartphone as I sit sipping coffee this morning in the mountains of New Mexico.
I am bidding on some FIO calls, dated out into anywhere over the next six months and with strike prices ranging from $25 to $35. These things trade at a premium, so I’m bidding under the markets and letting them come to me as they may.
And I’m shorting some AAPL puts, dated out in January with strikes anywhere near the current quote of $365 or so. I just got paid nearly $20 for some January $360 puts, which means that if the stock is at or above $340 when they expire in a couple months, I’m a net winner on the trade. If AAPL rallies or stays above $360 between now and then, these puts will drop in value and then I could buy them back much cheaper or just let them expire and pocket the $20 I received when I sold them short right now. Of course if AAPL drops to $300, these would be worth $60 and I’d have a net loss of $40 on a $20 bet…which would not be good.
Hope you’re enjoying your Tday week.