AAPL option decision
I had the urge to eat an apple this morning, so I thought that meant I should look at AAPL and decide what to buy, either a put or a call. Since I had a large quantity of AAPL puts when AAPL was much higher, I did have a bias liking for puts over calls, probably because I made profit on them.
So with the previous dropping in AAPL and along with the market initially down this morning (the DJI was down over 100 points, though now ony down 93 - ha ha ha) but AAPL wasn’t yet following, I decided it was time to buy.
AAPL Apr08 $125 puts (APVPE), 1 @ $9.90
stock price entered $121.60
Now I’m not sure what my spineless blogger friend will say about my decision on this option, but I will listen. If you haven’t checked out his blog, please do. Though he doesn’t always write with the intellect of a short bus passenger, he’s allowed to watch bus from across the street.
Alright, so let me make some ground rules with this trade. Like special rules that will apply only to this trade.
1) If the put value hits $8.90, I will sell and take the 10% loss.
2) If the put value hits $12.40, I will sell and take the 25% profit.
3) … ummm.. any more rules I should follow on this one?
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