AAPL Earnings this Tuesday - 580/600/620 Weekly Butterfly only $3.50

Discussion in 'Options' started by diaoptions, Jul 22, 2012.

  1. I have been curious about this for a while; so with AAPL down will you leg out of fly and look to convert to a potentially more profitable trade, rather than wait for AAPL to see 600 in 6 months
    #11     Jul 24, 2012
  2. does the implied of back months after earnings collapse such that it might be reasonable to take a position long vol after earnings vol implode? i mean stocks seem to just sit after busting a blowing up for a while on lower then historic volatility. or at least i've observed a few times.. is it reasonable to think its a good time to position long volatility?
    #12     Jul 24, 2012
  3. AAPL @ $570.00 during AH trading, looking for a bounce to >$583 by Friday - with 3 trading days left that is possible. I will update later on in the week.

    #13     Jul 24, 2012
  4. Yeah, you do that, Sport. $568 last.
    #14     Jul 24, 2012
  5. I am looking for 4-5 tomorrow. I will cover a bit but hold the remainder, possibly until expiration (tax-deferral), but with an intermediate goal of a strike touch (at lower vol). AAPL reports in the Feb13 series, so only one Q report in the interim.
    #15     Jul 24, 2012
  6. the closing of all the in profit puts will most likely cause the stock to pop tommorrow a little
    #16     Jul 24, 2012
  7. thats a super wide butterfly.. i'm never even thought about doing that before
    #17     Jul 24, 2012
  8. [​IMG]
    #18     Jul 24, 2012
  9. Hi atticus,

    I was wondering if you could walk us through the exact setup you have with that and what you look for in such a butterfly (i.e. do you look at percent chance of staying in a range, risk/reward, etc).

    If you don't want to give your exact details, maybe you could just lay out a simple example for people who don't do too many of these (like me).

    BTW - I almost put on a weeklies bull put spread on AAPL today (580-575) thinking they would probably do ok - glad I decided it would just be gambling and didn't do it!


    #19     Jul 24, 2012
  10. I put a 550545 spread on.figuring it would have to be catastrophic to.get down that low
    #20     Jul 24, 2012