WE EXITED BREAKEVEN HALFWAY THROUGH THE DAY, ON OUR PUT SIDE AND LET THE CALL SIDE RIDE TO EVENTUALLY EXPIRE.

THE LACK OF VOLATILITY TROUBLED US TO THE POINT OF TAKING OUR MONEY AND RUNNING.

10/26/12 Sold to Close -1 AAPL Put

Aapl Oct 26 2012 625.00 Put
AAPL Oct 26 2012 625.00 Put $18.15 $0.65 $0.08 $1,814.27
10/26/12 Bought to Close 1 AAPL Put

Aapl Oct 26 2012 610.00 Put
AAPL Oct 26 2012 610.00 Put $4.65 $5.60 $0.03 -$470.63

 

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Conservative Long Straddle Reverse Condor Hybrid $AAPL E.R. Play

THIS IS A CONSERVATIVE AAPL EARNINGS PLAY, AND WAS EXECUTED IN OUR ACCOUNT AT 13.43. WE TRIED FOR 13.40 BUT HAD TO REVISE AND BUMP UP A FEW PENNIES TO GET THE MARKET TO TO TAKE OUR ORDER.

FOR THIS TRADE TO BE MAX VALUE OF 15.00 AND EXPIRE OR CLOSE EARLY AT FULL VALUE AAPL WILL HAVE TO BE BELOW 610 OR ABOVE 640 ON FRIDAY FOR 10% GAIN.

OUR LOSSES AREA IS ANYWHERE BETWEEN 611.53-625 AND 625-638.53. OUR NATURAL TOTAL LOSS WOULD BE A PIN OF 625. WE WILL NOT LET A TOTAL LOSS HAPPEN AND STATISTICALLY SPEAKING THE ODDS ARE HEAVILY ON OUR SIDE THAT AAPL IS NOT A NON-EVENT. AAPL WILL BE BELOW 610 OR ABOVE 640.

THIS PLAY LETS US PLAY BOTH SIDES OF AAPL EARNINGS AND HAS A SMALL WINDOW OF ERROR.

SO  IN CONCLUSION, IF ALL GOES TO PLAN OUR MAX GAIN WILL BE ABOUT 10% AFTER COMMISSIONS.

Order Details

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Leg Action Contracts Option Description Price Duration
Leg 1 Sell to Open 1 AAPL Put AAPL Oct 26 2012 610.00 Put Debit 13.43 Day Order
Leg 2 Buy to Open 1 AAPL Put AAPL Oct 26 2012 625.00 Put
Leg 3 Buy to Open 1 AAPL Call AAPL Oct 26 2012 625.00 Call
Leg 4 Sell to Open 1 AAPL Call AAPL Oct 26 2012 640.00 Call
Quote AAPL   623.14   9.78 Bid 622.99 Ask 623.19 Volume 3,221,000
AAPL OCT 26 2012 610 PUT
AAPL OCT 26 2012 625 PUT
AAPL OCT 26 2012 625 CALL
AAPL OCT 26 2012 640 CALL
Bid 11.15 17.45 15.60 8.55
Ask 11.30 17.65 15.75 8.70
Last 11.15 17.95 15.40 8.65
Change -4.05 [-26.64%] -4.55 [-20.22%] 0.50 [3.36%] 3.40 [64.76%]
Volume 671 1,051 2,128 1,561
Delta -0.37 -0.50 0.50 0.34
Open Int 3,525 4,125 4,790 6,486
Desc AAPL Oct 26 2012 610.00 Put AAPL Oct 26 2012 625.00 Put AAPL Oct 26 2012 625.00 Call AAPL Oct 26 2012 640.00 Call
Net Quote
Bid
13.05debit
Mid
13.38debit
Ask (natural)
13.70debit
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