Tuesday, August 12, 2008

AAPL redux

I guess I implied it, but its worth emphasizing that with the Nasdaq perched near a high point, and AAPL too, a strong down day is probably an excellent AAPL put option opportunity.
But it is expiration week, which means premiums are low nd delta is high making for really nice potential gains on modest stock movement, but also a lot of risk if the market turns and runs you over when your not looking. There's little time to make up a bad trade, but you can always try putting on a spread to hedge and even make back money lost on the original directional trade, if the counter trend is strong.

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