AAPL

Discussion in 'Options' started by oldnemesis, Jan 10, 2016.

  1. AAPL:

    http://www.marketwatch.com/story/the-iphone-slowdown-spells-doom-for-apple-2016-01-07

    http://www.marketwatch.com/story/ap...t-jan-quarter-iphone-6s-production-2016-01-05

    http://www.forbes.com/sites/chuckjo...wagon/?utm_campaign=yahootix&partner=yahootix

    http://finance.yahoo.com/echarts?s=AAPL+Interactive#{"range":"2y","allowChartStacking":true}

    Trade:
    With AAPL at 96.96
    Oct 130/135 bear call spread for a net credit of $45
    Yield = 45/455 = 9.9% in 285 days or 12.7% annualized
    Prob = 84%
    Expectation = .84(45)-.13(455) -.03(227) = 37.8 - 59.15 - 6.81 = -28.16


    Price............Profit / Loss.........ROM %
    70.00............... 45.00............ 9.90%
    90.00............... 45.00............ 9.90%
    100.00............. 45.00............ 9.90%
    120.00............. 45.00............ 9.90%
    130.00............. 45.00............ 9.90%
    130.45.............. 0.00............. 0.00%
    135.00........... (455.00)......... -90.10%
    140.00........... (455.00)......... -90.10%
    150.00........... (455.00)......... -90.10%