Option Investor

MURPHY's LAW appears in the form of a POISON AAPL

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It is amazing the way things play out.

AAPL for some reason today got "OVEREXTENDED" and triggered our STOP LOSS on our OCT 155 Put at $3.00 DEBIT we then were closed out of our OCT 150 Postions for $1.75 CREDIT giving us a TOTAL NET DEBIT of $1.25. ( some of you may have gotten a better of slightly less debit. ) This market in AAPL truly was over reactive today. Those of you who waited to put on their stops or usually wait to put on their stops may have been spared this "OVERREACTION to the stock today." and may still make out for the month with only 6 days remaining and the stock still out of the money by anywhere form $4.00 - $7.00 depending on what time you read this blog

This is a perfect case as to why STOPS and STOP LIMITS are inperfect. Once again those of you who wait to put on STOP LIMITS at a later time might be sparred from this overaction of the stock. For those who were stopped out and believe this was an over eaction might want to go back in and double the number of contracts and roll down the position to the OCT 150/145 put spread or even 145/140 put spread -( if you think there is enough premium available in the latter )

Once again, Beware of MURPHY's LAW

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