We will be recommending the following additional credit
spread for our Portfolio #2 in
the following issue.
We are going to add a call spread on AAPL which will
complete an iron condor on our AAPL position.
The last position I thought I would have to try and salvage from
a loss from would have been AAPL, however I have seen stranger things in this
stock market over time.
We just do what we have to do sometimes.
This is one of those times.
We are going to add this call spread position so that if we have to
take a loss on the AAPL put spread, we will be able to reduce the net loss
to some extent when or if we have to close out the put side of this position.
We could potentially sell the AAPL November put spread, after the October
earnings to recoup a large part of the October AAPL put spread if AAPL
does not recover this week and we have to take a loss.
We actually got back out of the money earlier today, before the stock just
fall out of bed late in the day.
We still have an opportunity, if we can get a fill on this call
position tomorrow to get a bounce next week from AAPL and maybe get
the stock to trade in a range between the $650 and $655 and
reduce some of the loss in this current position, if we have to close out the put side well under $645, which seems like what we will probably have
to do next week.
We will see how that plays out.
We are recommending the following specific credit spreads.
Call credit spreads = bearish call spreads.