Damage control

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    Posted: 24 July 2012 08:32 PM #16

    Also on the oversold bounce, I’ll put on SEP’12 bear spreads.  I may also (or alternately) flip my OCT’12 bull spreads into bears (legging) if I’m nimble enough.  But my dexerity will get enough of a workout with AUG’12 holdings.

    Like my trading twin Joe, I will sell calls against my currently unhedged OCT’12 650s…creating bear spreads, not bull spreads…possibly calendar bear call spreads.

    I am never, ever getting short-term options again.  Again!!!

         
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    Posted: 24 July 2012 08:33 PM #17

    Iceage - 24 July 2012 11:30 PM

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

    Patience.  Or sell some calls against them to hedge.

         
  • Posted: 24 July 2012 08:34 PM #18

    lovemyipad - 24 July 2012 11:32 PM

    Also on the oversold bounce, I’ll put on SEP’12 bear spreads.  I may also (or alternately) flip my OCT’12 bull spreads into bears (legging) if I’m nimble enough.  But my dexerity will get enough of a workout with AUG’12 holdings.

    Like my trading twin Joe, I will sell calls against my currently unhedged OCT’12 650s…creating bear spreads, not bull spreads…possibly calendar bear call spreads.

    I am never, ever getting short-term options again.  Again!!!

    Ipad, Is aapl currently oversold?  Thanks.

         
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    Posted: 24 July 2012 08:37 PM #19

    Iceage - 24 July 2012 11:30 PM

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

    In my opinion you are safe to hold those.

    By the time april rolls around we will have: 2 quarters of iPhone 5, the iPad 4 released, likely an iPad 8” device, and perhaps even an appleTV.

    Signature

    Full Disclosure:

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

         
  • Posted: 24 July 2012 08:38 PM #20

    lovemyipad - 24 July 2012 11:32 PM

    Also on the oversold bounce, I’ll put on SEP’12 bear spreads.  I may also (or alternately) flip my OCT’12 bull spreads into bears (legging) if I’m nimble enough.  But my dexerity will get enough of a workout with AUG’12 holdings.

    Like my trading twin Joe, I will sell calls against my currently unhedged OCT’12 650s…creating bear spreads, not bull spreads…possibly calendar bear call spreads.

    I am never, ever getting short-term options again.  Again!!!

    They’re fools gold, er,...pot metal.

         
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    Posted: 24 July 2012 08:43 PM #21

    Mercel - 24 July 2012 11:25 PM
    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.

    Just asking, after this last week I won’t be looking at weeklies again. Last week because AAPL closed at 603 or so I was assigned 4000 shares, that I sold Monday for a nice loss.

         
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    Posted: 24 July 2012 08:49 PM #22

    alice - 24 July 2012 11:34 PM

    Ipad, Is aapl currently oversold?  Thanks.

    It will be when it opens in the morning.

         
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    Posted: 24 July 2012 08:51 PM #23

    Rupert22 - 24 July 2012 11:43 PM

    Just asking, after this last week I won’t be looking at weeklies again. Last week because AAPL closed at 603 or so I was assigned 4000 shares, that I sold Monday for a nice loss.

    Rupert, that’s the biggest problem with the short-term…the whipsaws.  No TIME to recover.

         
  • Posted: 24 July 2012 08:53 PM #24

    lovemyipad - 24 July 2012 11:51 PM
    Rupert22 - 24 July 2012 11:43 PM

    Just asking, after this last week I won’t be looking at weeklies again. Last week because AAPL closed at 603 or so I was assigned 4000 shares, that I sold Monday for a nice loss.

    Rupert, that’s the biggest problem with the short-term…the whipsaws.  No TIME to recover.

    That being said just keep in mind we can stay over sold as long as we stayed over bought in Jan 12.  Trade what you see,not what you expect to see….

         
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    Posted: 24 July 2012 09:00 PM #25

    ^^^^  Love that guy!!! smile

         
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    Posted: 24 July 2012 09:26 PM #26

    lovemyipad - 24 July 2012 11:32 PM

    I am never, ever getting short-term options again.  Again!!!

    It took me that, plus some extra losses, to finally sink into my head that I’m no good at short term option plays :p Short term options are evil I tell ya!

    Signature

    Fortes fortuna adiuvat.

         
  • Posted: 24 July 2012 10:02 PM #27

    Amidst the disaster, here’s a thought: QE3 might be quite near now and would be expected to have a rising effect on the market and might mitigate AAPL’s fall in the coming months.

         
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    Posted: 24 July 2012 10:18 PM #28

    Disaster control.  I am stunned right now so need to be very careful not to make things worse.  Based on reading through each of your thoughts and plans, I will sell all of my Oct 600s and half of of my Jan 13 600s sometime tomorrow (hoping for some kind of bounce from the open).  I will use half of the proceeds to buy Apr 13 (not sure the strike, maybe 600s as well).  Comments/suggestions welcome.  Thanks.

         
  • Posted: 24 July 2012 10:18 PM #29

    How did you determine that the 590 range is a level of resistance ?


    I have a bunch of Weekly 630 strikes along with some august 640 strikes - Any suggestions ?

    Jcaron - 24 July 2012 10:15 PM

    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 10:46 PM #30

    DavidCV100 - 25 July 2012 01:18 AM

    Disaster control.  I am stunned right now so need to be very careful not to make things worse.  Based on reading through each of your thoughts and plans, I will sell all of my Oct 600s and half of of my Jan 13 600s sometime tomorrow (hoping for some kind of bounce from the open).  I will use half of the proceeds to buy Apr 13 (not sure the strike, maybe 600s as well).  Comments/suggestions welcome.  Thanks.

    Therein lies the problem. Too many AAPL bulls that will be scrambling to scavenge anything they can from current short term positions, driving things even lower IMO. Personally, I’m looking at adding when we near the low P/E for the quarter (or lows on the BB bands). Will be playing close attention to AVSPY on the daily chart to tell me when we’re really oversold (and the complaining on AFB will be loud). That’s when I’ll trade shares for BCS’s. Not doing anything short term for now. Most of my BCS’s are 13’s that are ITM and a bunch of 2014s that I’m not touching.

    We just never know when QE hits or when we get some good news on the legal front.