We are recommending the following credit spreads to the December 2014 expiration cycle.
We are recommending credit spreads for our Portfolio #2 in
the following issues.
We failed to fill our AAPL 118/119 call spread yesterdy, so today instead of throwing in the towel
let's see if we can get the following trade filled today.
We are now attempting to add an AAPL 116/117 call credit spread , which when combined with our AAPL put spread will give us an
iron butterfly on AAPL.
Since it would cost us about $0.75 to exit the 115/116 AAPL put and close the position, lets see if we can get a litte
premium on the call side that allows us to stay in the position, and even if AAPL does not recover, we will not risk more than
$1.00 less the $0.20 we received on the call spread below ( if we can get a fill ) and if you combine it with our initial
AAPL 116/115 Put spread ( which we received $0.25, we only have $0.55 at risk even if we have to eventually close the
AAPL 116/115 put spread at a maximum loss of a $1.00 on Friday.
Hence, we are recommending the following specific credit spreads for Portfolio #2:
Call credit spreads - Bearish Call spreads.