DailyPlay – Closing Trades (AAPL, ALL) Rolling Trade (AAPL) – October 8, 2024

Closing Trades

• AAPL – 53.57% gain: Buy to Close 5 Contracts (or 100% of your Contracts) October 25st $235/$240 Call Vertical Spreads @ $0.43 Debit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will pay $215. We initially opened these 5 Contracts on October 3 @ $0.93 Credit. Our gain on this trade is therefore $250.
• ALL – 100% loss: Buy to Close 5 Contracts (or 100% of your Contracts) October 18st $185/$180 Put Vertical Spreads @ $2.50 Debit. DailyPlay Portfolio:  By Closing all 5 Contracts, we will pay $1,250. We initially opened these 5 Contracts on September 26 @ $1.09 Credit. This trade, therefore, had a loss of $141 Debit per Contract.

AAPL Bearish Opening Trade Signal/ Rolling Trade

Investment Rationale

As AAPL is rejected at its $230 resistance level, we are looking for a continuation lower and we are looking to lock in some profits and roll it out and down to the Nov 1 $225/$230 Call Vertical to collect another $2.08 in Credit. 

With another hurricane barreling down the Gulf coast of Florida, insurance stocks such as ALL are getting hammered and we need to close out this trade to prevent further losses. 

We are Rolling AAPL by closing the one trade and opening a new trade with an expiry date a little further out.

AAPL – Daily

Trade Details

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish Credit Spread

Details: Sell to Open 7 AAPL November 1 $225/$230 Call Vertical Spreads @ $2.08 Credit per Contract.

Total Risk: This trade has a max risk of $2,044 (7 Contracts x $292) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $292 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that failed to break above resistance and is likely to pullback to lower levels.

1M/6M Trends: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 108

Stop Loss: @ $4.16 (100% loss to the value of premium)

View AAPL Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View AAPL Trade