Cash Secured Put Alternative in AAPL
Do I love AAPL at these prices? No! Does it feel like trying to catch falling knives and trying to pick a spot where AAPL will bounce? Yes! I am taking a short term contrarian position with a put credit spread in AAPL. Do I think this is the best candidate out their ? No! I like the price charts better in the following stocks for Cash Secured Puts: CMG, MCD, UNH, ULTA, VMW, AZO, CI, CME, AAP, NEE, CLX, ANTM, and others. Looked at Put credit spread earlier in AZO, but liquidity stinks! Easier to go to AAPL and it’s great liquidity , than sort through other less liquid candidates with much nicer bullish price charts. Back to AAPL and my purely short term contrarian play. The Trade is B 1 Dec 7 155 P and Sell 1 Dec 7 165 P for 1.39 Credit, AAPL was at 172.35 . The risk is $861. Right after I did the trade, AAPL dropped to 171 area and the spread was trading at 1.64! As Charlie Brown would say, Ugh!Now at 12:30 central, stock has come back to 171.90 -.39 and the spread is trading around 1.42. Bottom line, AAPL still […]