I wrote another put on Apple.
music selection: “Panic Switch” — Silversun Pickups
My old position in Apple expired profitably over the weekend and I’m back for more. Apple is a great company that is cheap by most measures. I sold AAPL160603P00100000 for 1.70 a share. That trade will be in force for 40 days and yields 15.51%. The trade also enjoys 6.78% downside protection.
Apple announced earnings and gave forward guidance recently and shares sold off 10%. There has been a modest recovery since. The future still looks bright for this cash flow machine and I think the market is being irrational. My put is currently in the money. If assigned, I will write covered calls against the shares for more income while potentially collecting dividends. It’s win/win.
Devour your prey raptors!