Thursday 12 May 2016

May 12 - Some short puts and what's wrong with AAPL?

A couple of more trades over the past two days:
  • Sold GOOGL May 720 puts @ $3.40 x 1
  • Sold AAPL Jun 90 puts @ $2.21 x 2
Rationale for selling the GOOGL put was to add some +delta to the 715 calendar.  AAPL sold off early this morning, so I wanted to sell some premium with the bump up in IV.  AAPL cracked below $90 this morning.  It's not in a happy place.  My AAPL calendar needs some help.  I think AAPL is a good candidate to open up an iron condor or butterfly next week.

I'm mulling over a long-term SPY diagonal 205/210 (January back month, perhaps June/July front month).  I'll roll the front at the 210 strike until SPY hits 210 in which case I'll roll $5 higher.  I'll keep doing this for the balance of the year.  Downward trending IVs generally aren't good for my regular calendars, but am hoping by adding +delta with the diagonal will mitigate some of the low vol risk.


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