AAPL June Calls

Discussion in 'Stocks' started by jazzsax, May 10, 2007.

  1. jazzsax

    jazzsax

    Bought some June AAPL $115 Calls yesterday at $1.10...

    They've been moving nicely today....

    Anyone else think we could see $115 before the end of May?
     
  2. john12

    john12

    i think we see $125 by the end of may and $150 or so by sept. wouldn't be suprised to see $200 by year end. why not there's no ceiling on the market
     
  3. Tums

    Tums

    I don't buy options with less than 90 days expiration. Only newbies do that.

    At times of impending move, I would consider less than 90 days, but over 60 days for sure.


    I would only buy short term option that is deep ITM. But then, if I have to go deep ITM, there are other alternatives I can consider.
     
  4. Why? As of now those options are up about 50%.
     
  5. jazzsax

    jazzsax

    More than that now.... as of now up to $2.45..... can't complain!
     
  6. My best suggestion for a Home Run Trade like this:
    Lock in some profits now and sell half the contracts at 2.75 (+150%) and lets the other half run with a -50% mental trailing for every +50% gain.
    Example:
    Option Value......Trailing Stop
    2.75....................2.20 (+100%)
    3.30....................2.75 (+150%)
    3.85....................3.30 (+200%)
    4.40....................3.85 (+250%)
    4.95....................4.40 (+300%)

    In other words for every +50% gain above +100% profit,
    keep a mental stop -50% under (like on the table above).
    Between now and June expiration you will either stop out at a high profit level somewhere along the way, or carry the trade to expiration day with an extremely high profit level.
    Either way, with the current price at 2.75 (+150%) and selling half the contracts now (allowing the other half to remain open with the trailing stop table), it would be impossible to lose at this point.
     
  7. all those calls expired