Can I Still Play the Upside in AAPL?


AAPL is up almost 7% today, up $36+, trading near $563.

You might say, “Dan I missed this move”!” “Dan, I even told my neighbor at the mailbox we would start going up in AAPL”! The stock was down 25% or $170 in about 2 months! Should a rebound be a shocker? No, but 7% in one day? What strategy can I employ that would let me play a $600 stock rather cheaply to the upside, but not rip my face off if we go back down?

Strategy and trade idea: 

Bullish Butterfly in December Weeklies with about 18 days to go. 

Buy 1 December 570 call

Sell 2 December 580 calls

Buy 1 December 590 call These are December 7th Weekly options

A total debit per 1-2-1 spread of $0.95 ($95). example excludes commission

In 9 days if AAPL is between $560 and $600, the yield could be between 20% and 50%.

Again, the maximum risk is what you pay for the butterfly, in this case $95.  

Have a great Turkey week! 

Dan Sheridan