Write put Apple (AAPL)

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!