AAPL Cash Secured Put Alternative

Around 11:30 central today, AAPL was at 199.66 -7.82 for the day. Friday was down pretty good also because of earnings. Today, I took a neutral to Bullish long term stance with AAPL and did a put credit spread instead of a very expensive cash secured put ( simply a short put). I sold the Nov 23 190  Puts  and didn’t like the high margins of a short put, so I bought a 180 Put against it. I did the credit spread for 1.60 credit. A little less than 3 hours later, I bought back the spread for 1.16 Debit with AAPL near 201.5 at 2:17 pm central, a return of over 5%. My plan was to take 10%, that would mean buying back the spread for .80 Debit.  But my impulsiveness had a hard time turning down over 5% in less than 3 hours!

Bearish Natural gas spread

UNG, the etf for natural gas is trading near highs not seen since the middle of last winter. A short term bearish butterfly looks interesting  here to take advantage of a pullback that may be coming. As I write this, UNG is trading around $26.60. I am looking to place the trade below at a debit of around $1.30 per contract. Looking to close the trade at either a 10% profit or a 10% loss. Looking for UNG to decline to the $25 to $26 area in the short term.

Nov 2nd expiration:

Buy one 28 put

Sell two 25 puts

Buy one 22 put

Mark Fenton


Live Iron Condor in SPX

(The below trade was put on earlier today in a webinar with ally invest.)

Today around 11:30 am central, we put on an Iron Condor with SPX around 2760 and VIX just under 22.  The trade was in the Oct 26 Expiration. B 1  2860 C, S 1  2850 C, S 1  2630 P, B 1  2620 P, total credit 2.20 , margin/risk  $780. Plan is to take off for about 8% profit or 1.55 Debit. If spread goes over $3 get out for 10% loss.

Dan Sheridan