Damage control

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    Posted: 24 July 2012 06:59 PM

    Here’s a thread to brainstorm damage control strategies…

    I’m with my trading group at the moment, but after that, I shall return here…  I’ve had enough practice at this, so I’ll share what I’m doing…

    As always, the usual disclaimers: this is only informal discussion, not advice; consult a professional if you seek professional help; proceed at your own risk, blah, blah, blah…

         
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    Posted: 24 July 2012 07:05 PM #1

    My butterflies are TOAST.

    Will probably cap most of my unhedged call wells and wait for opportunities, may take weeks, may take much less time than that. 

    This is NOT a dip to buy with the limited data available, but that’s just me.

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    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
    AFB Night Owl Team™
    Thanks, Steve.

         
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    Posted: 24 July 2012 07:09 PM #2

    Well I’m thankful I’m 90% in 2014 LEAPS, but my Jan 13 600 calls will tank a bit tomorrow, and are nlikely to see any improvement until the next product announcement.

    My damage control strategy? Do nothing until October.

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    Full Disclosure:

    - Long Apple
    - Pro: Apple HDTV, iPhone Air, Stock split, Consumer robotics

         
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    Posted: 24 July 2012 07:13 PM #3

    Subject to change at any time, I’ll harvest what cash I can from my calls and buy dips, short vulnerable stocks (not sure if AMZN counts), etc.

    We may be in for another Screamfest August.  It’s always good to be nimble.

    Signature

    The Summer of AAPL is here.  Enjoy it (responsibly) while it lasts.
    AFB Night Owl Team™
    Thanks, Steve.

         
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    Posted: 24 July 2012 07:14 PM #4

    I plan to: buy the dip, sell the oversold bounce, and unload everything that expires before JAN’13, plus 1/2 of JAN’13 positions.  I suspect we will see lower prices between now and OCT’12, and I will buy everything back then.  And if I’m wrong, then I have 1/2 of JAN’13 positions and all of APR’13 positions.

         
  • Posted: 24 July 2012 07:15 PM #5

    My plan is this…  For unhedged calls, I have 1 Aug 625 and 1 Oct 600 I will sell a call against them.  I Plan to sell 590’s against both as this is a leve of resistance.

    For my spreads, I will be buying back short legs at different tiers on the way down.  For my far otm spreads I will dump them at anything that looks like a pop, take my loss and hold cash for buying ops.  That being said, I will be VERY selective as to what I may add.

    For my common I am going to sell covered calls to help offset some my enormous losses I just took..

         
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    Posted: 24 July 2012 07:20 PM #6

    I have an Aug 610 position. Will most likely sell it tomorow first thing. Anybody the same or a similar position?

    Will keep my Mar 2013 position and my stocks.

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    “Anyone who has never made a mistake has never tried anything new.” Albert Einstein

         
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    Posted: 24 July 2012 07:30 PM #7

    lovemyipad - 24 July 2012 10:14 PM

    I plan to: buy the dip, sell the oversold bounce, and unload everything that expires before JAN’13, plus 1/2 of JAN’13 positions.  I suspect we will see lower prices between now and OCT’12, and I will buy everything back then.  And if I’m wrong, then I have 1/2 of JAN’13 positions and all of APR’13 positions.

    Are you doing this all tomorrow? Just wondering when you expect the oversold bounce.

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    “Anyone who has never made a mistake has never tried anything new.” Albert Einstein

         
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    Posted: 24 July 2012 07:51 PM #8

    lovemyipad - 24 July 2012 10:14 PM

    I plan to: buy the dip, sell the oversold bounce, and unload everything that expires before JAN’13, plus 1/2 of JAN’13 positions.  I suspect we will see lower prices between now and OCT’12, and I will buy everything back then.  And if I’m wrong, then I have 1/2 of JAN’13 positions and all of APR’13 positions.

    ipad,

    What are you looking to buy weeklies, monthly’s or further out?
    Thanks

         
  • Posted: 24 July 2012 08:03 PM #9

    So do you think my Weekly Bull Put Spreads for 595/600 are toast?  Should I sell them for whatever little I can get tomorrow or hold out for some miracle at the end of the week?

         
  • Posted: 24 July 2012 08:05 PM #10

    Vitalogy80 - 24 July 2012 11:03 PM

    So do you think my Weekly Bull Put Spreads for 595/600 are toast?  Should I sell them for whatever little I can get tomorrow or hold out for some miracle at the end of the week?


    Yep.  Get out the butter ( or jam) to have with your toast.  Your recoup, if you sell may be less than commission tomorrow at open.

         
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    Posted: 24 July 2012 08:21 PM #11

    Big Al - 24 July 2012 10:30 PM
    lovemyipad - 24 July 2012 10:14 PM

    I plan to: buy the dip, sell the oversold bounce, and unload everything that expires before JAN’13, plus 1/2 of JAN’13 positions.  I suspect we will see lower prices between now and OCT’12, and I will buy everything back then.  And if I’m wrong, then I have 1/2 of JAN’13 positions and all of APR’13 positions.

    Are you doing this all tomorrow? Just wondering when you expect the oversold bounce.

    Everything tomorrow.

    OCT’11 quotes:

    Open:  401.45
    High:  408.42
    Low:  397.80
    Close: 398.62

         
  • Posted: 24 July 2012 08:23 PM #12

    Burgess - 24 July 2012 10:09 PM

    Well I’m thankful I’m 90% in 2014 LEAPS, but my Jan 13 600 calls will tank a bit tomorrow, and are nlikely to see any improvement until the next product announcement.

    My damage control strategy? Do nothing until October.

    +1.  Have patience.  My worst moves on Apple have always been short-term ones.  September/October will see an iPhone 5 launch and we’ll see $675 - $700 without stretching too much.  The only caveat is Europe.

    My Septembers are toast, probably.  C’est la vie.  I have some Octobers that have a chance though.

         
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    Posted: 24 July 2012 08:25 PM #13

    Rupert22 - 24 July 2012 10:51 PM
    lovemyipad - 24 July 2012 10:14 PM

    I plan to: buy the dip, sell the oversold bounce, and unload everything that expires before JAN’13, plus 1/2 of JAN’13 positions.  I suspect we will see lower prices between now and OCT’12, and I will buy everything back then.  And if I’m wrong, then I have 1/2 of JAN’13 positions and all of APR’13 positions.

    ipad,

    What are you looking to buy weeklies, monthly’s or further out?
    Thanks

    Rupert, further out.  JAN’13 or APR’13.

         
  • Posted: 24 July 2012 08:25 PM #14

    Rupert22 - 24 July 2012 10:51 PM
    lovemyipad - 24 July 2012 10:14 PM

    I plan to: buy the dip, sell the oversold bounce, and unload everything that expires before JAN’13, plus 1/2 of JAN’13 positions.  I suspect we will see lower prices between now and OCT’12, and I will buy everything back then.  And if I’m wrong, then I have 1/2 of JAN’13 positions and all of APR’13 positions.

    ipad,

    What are you looking to buy weeklies, monthly’s or further out?
    Thanks

    After today, I’m quite surprised anyone would suggest weeklies.

         
  • Posted: 24 July 2012 08:30 PM #15

    I have some Apr13 $580’s and $610’s. I presume just being patient should be the plan?