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February 21, 2013 / redman59

Back to the Beginning in AAPL Trade

In my most recent post titled “Following the Trade – AAPL Trade Adjustment on Friday 2/15” I detailed the ongoing trade that I have on in AAPL.  In this post I won’t go into full detail on the trade, reasons for, and adjustments but here are the links in chronological order of those details stated:

Today I closed that  Feb4/Mar1 440 Put Calendar in the morning for a 4.40 credit (+$271.00, 160.4%), trade order below:


I wanted to take advantage of the morning weakness and just close out this hedge to the main Broken Wing Butterfly that I had on.  With the gains in the 2 calendar trades I put on, the remaining trade of the original BWB is a risk-free trade at a $95 credit.  I do not plan to add anymore hedging strategies to this trade and instead will ride out the BWB more and likely to near expiration.  In a perfect world AAPL would shoot past then retrace to the 480 level around March expiration, 22 days.

Below is the new risk profile, same look as the original trade with different risk/reward:


Now I sit and wait until March expiration.  I could keep adding a hedging strategy but with those 2 calendar trades I am happy with the risk and will let AAPL do its thing leaving the long bias trade on.  Below is a trade history:


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