AAPL is currently at around $115.47 at around 12:30 central today. The stock is down about 10% in the last week if you count the lows today of around $112.
About 2 months ago AAPL hit $132-133 area. AAPL hit $112 today and could go a bit lower short term, but I think it will be over 114 in the next few months.
I am looking at a strategy called a Long Diagonal or Fig Leaf (name given to this type of strategy by Brian Overby at Trade King).
Trade: I just put this trade on live and will follow up on this. Buy 1 November 110 call and Sell 1 September 115 call for total debit of $5.45 debit. The Breakeven point at expiration on the downside is around $110.70.
My short September is around 44 days from expiration and my long November call is 107 days from expiration. On the downside for this week, if we hit $113, I would probably look for an adjustment and would probably come on the blog and discuss one.
My profit goal on this trade is to make around 15% of the cost of the trade. This is a debit transaction. Please see our options mentoring page.