AAPL was trading at $502.60, an all-time high, near Monday’s close.
Trade: Selling the AAPL Jan 2013 450-400 Put Credit Spread for $16.00 total.
Profitable: I make money on this trade if AAPL Closes above $434 on January 18, 2013.
Break-even: I break-even on this trade if AAPL Closes at $434 on January 18, 2013.
Unprofitable: This trade is unprofitable if AAPL Closes below $434 by January 18, 2013. The most I can lose on this trade is the amount the spread can be worth, $50.00 minus the amount I sold the spread for $16.00, for a total of $34.00.
Reason I like this Trade: AAPL is a beast and I am looking to get long on any dips. I do not think there is anything that can derail AAPL right now, I think either a stock split or a dividend would make the stock rally even higher. The IPad 3 should be awesome with a new HD screen, lighter, and faster. Then there will be a possible Macbook Pro upgrade this year with possibilities of a new Iphone and AAPL TV. This is more of a position than a trade, so I will not be looking to take any partial profits, just add more if the stock sells off. Also, watch out for the possible IBrick this year.
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