Put option trading
Option Credit Spread: Just did a Put Credit Spread on Apple in my personal account.
Sell the Feb 320 Puts, Buy the Feb 310 puts for a credit of .95 cents
Total risk per spread, also the margin, $905.
Maximum return per spread: $95 for a potential ROI of 10.49% before options commissions.
19 days left in this trade before expiration. 83% probability of profit according to thinkorswim.
This trade is a little too risky for the OptionGenius portfolio so I am posting it here. Why risky? Because it is not too far away from the current price of 338. There is support at 320 which is good, but if the market turns over, Apple will be one of the first to slide.
AAPL stock credit spread
If Apple does drop, I will probably exit the option trade when I am down 10-15% which is $135. I don’t know if I will have time to post any adjustments on the blog so trade at your own risk.