Just closed out live long Diagonal from August 5 Blog. We entered a neutral to slightly bullish trade in AAPL when it was around $115 1/2. We bought the November 110 /September 115 call diagonal for $5.45 debit . I just sold it out now live for $5.89 credit with AAPL up today at about $117.44, a return of about 8% in 5 days. I could have let the trade go longer and seek the original 15% target. I decided to get out today partly because of impatience ( not good), and partly because I’m not convinced yet that AAPL will stay up in this price area of around $118. Stay tuned for the blog this week for next trade idea.
Saturday, I taught a 4 hour class on Manage by the Greeks. I showed how to apply this risk management methodology to most of the common strategies you employ, including cash secured puts, calendars, Iron Condors, butterflies, covered writes, long diagonals, and credit spreads. For Iron Condors, Calendars, and Butterflies, we covered 30-60 day trades as well as Weekly trades. Lots was covered and the class should be ready to buy the archived version this week. Go to Sheridan Mentoring web site for more information to purchase the class. Very cheap cost of $197. Great thing about classes you buy from Sheridan mentoring, you can e-mail questions anytime, even months after the class, and Dan will answer them.