AAPL at support $129

An apple a day keep the pocket full

Dec 30, 2022

AAPL went below this support line on Wednesday and we saw an opportunity to long it when it started to bounce back up.

We did a Synthetic Stock Options trade Buying Feb 17 DTE 130 Call and Selling the 125 Put for a credit of $0.28. The trade went well into profits but the market sold down later part of the day.

With the rally yesterday after the unemployment claims results were as forecast, the market rallied 1.7% and was strong throughout the day.

We decided to exit at $2.50, raking in a profit of $2.75 less commissions in 2 days.

My Take…

At this current price, AAPL is already a buy. So trading it using naked puts is of no problem to me because if the trade don’t go my way, just take the share position as the premium for the naked put gives us another 5% discount at current level.

Buying the call to make it a synthetic stock, means I have a free call if the stock price don’t fall below this 5% which is around $6 assuming I keep it till expiry, which is unlikely as I am only in for a quick bite.

The naked puts also reduces the risk of any long calls if the move up does not come immediately.

Alternatively, go for shorter dated calls, financed by longer dated Put Spreads if you do not have enough buying power.

More Opportunities Ahead?

Looking to tranch in stock purchase at $124.20. If it comes here, its nice…

Next support level down is $123.13.

Earnings expected 27 Jan. With the Christmas sales just passing, would you expect a good quarter? probably so…

Until then, watch the ranges between $123.13 and $129, on a strong down move to this range, I would do a high Delta trade and get more “Quick Bytes”…

Happy trading! today’s the last day of the year, hope the market will be kind to give back some upside to us…

DISCLAIMER

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