original blog entry:
15feb - The move that almost everyone was expecting to happen finally did. The much anticipated pullback happened. you could almost taste the sentiment change while watching FastMoney half time yesterday. Ive been looking to reenter with credit put spreads but shooting against the 440 level. Sometimes you get the perfect setup, sometimes you dont. the 440 level didnt give me enough premium at the time. So the stock pulled back from 525ish to near 500 in about an hour...when you get a rapid move like that the put premiums juice up a bit...so taking advantage of that i entered a half position on Mar455/460 spreads.. nothing special about 460level except since there is not a good level to shoot against like a moving average or support line, the 460 level at the time gives me about an 85% probability of max profit. Like ive said before if you are unsure of the position, take half size with the option of either just going with that or adding to it later if stock moves down more.
So on 15feb i sold:
6lots - mar 455/460 credit put spreads at .75
Stock was weak in morning on 16Feb so i added to that to make full position:
6lots - mar455/460 credit put spreads at 1.10
If stock rebounds to recents highs in next week or so i might be taking profits, if not then let the time decay work on it. The strong fundamentals of AAPL make this a good candidate for an easy roll if it comes to that near opex. No interest in making it an iron condor..if/when stock rebounds up i dont want to have to worry about call spreads...just want to worry about taking profits on the puts.
