Shares of Apple were assigned to me over the weekend.
music selection: “Hungry” — Lita Ford
I was originally over six percent out of the money upon writing the put. Apple underwhelmed with quarterly reporting and gave warning guidance on weak future demand in China. Shares sold off all the way down to 94 as a result. Google even surpassed Apple in market cap as a result. I’m confident the shares will recover and want to milk this one for short term income.
On Monday, I sold a covered call against my shares. My cost basis is 100 per share so I chose that as strike. I sold AAPL160311C00100000 for 1.40. The trade will be in force for 40 days and yields 12.78% annualized. I’m very happy to be getting over 12% on a trade where I was “wrong”.
I have three more trades from Monday, which I’ll cover over the next three posts. After that, I will resume the eight part series on blue chip put writing candidates.
Devour your prey raptors!