I bought 3 contracts Apple (AAPL) Calls on 7/11/19 and I just sold to close the position.
I woke up this morning and my wife told me she had to take a ride to Boston to take care of some business. Her Mom lives there. She asked me to take a ride so I’m doing my trading from the passenger seat. This is the great thing about being an options trader, I can work from anywhere.
Apple’s earnings came out after the close yesterday and the Street was happy. As I write the stock is up $7.50 but was up more a little while ago. A few weeks ago on 7/11/19 I bought 3 contracts of the AAPL 6/19/20 $205 Calls. I paid a $19 premium which is $5700 for the 3 contracts. AAPL has been moving up into earnings and moved big with the announcement. With the stock at about $217.30 the premium was at $26. With the Fed’s meeting today I decided to take the profit. You never know what will be said and how the market might respond. Also, you know how I like to take profit, especially with long options. Below are the 2 orders, 1 with the purchase of the option and the other is today’s “Sell to Close.” As you can see I made $2100 with this trade.
7/11/19 – Buy to Open 3 AAPL 6/19/20 $205.00 C @ $19.00 ($5700)
7/31/19 – Sell to Close 3 AAPL 6/19/20 $205.00 C @ $26.00 ($7800)
Profit +$2100
I held this position for a little less than 3 weeks. I made $2100 on a $5700 investment. That’s a 36.8% return!
I have a feeling that AAPL might pull back a little. If not, fine, I took a nice profit. If it does it will be an opportunity to get back in if I want. I never worry about taking profit and possibly losing out on more profit, the trade opportunities are plentiful. I can find deals all day long. This is what I want to teach you. Main Street will beat Wall Street!
Steve
The Options Coach