The high implied volatility levels is juicing up the premiums on this name so I decided to try and take advantage of Apple (AAPL) April 12 contracts with a highly spec trade. The time stamped tweet (PDT) of my entry is below:
I’m aiming at AAPL heading lower a few percentage points by expiration. With the contracts expiring in a couple of days, time decay should really kick-in.
Above is the hourly chart of AAPL. The $620 zone rejected on increased volume so the next zone I am watching is $595-$600. The great thing about this trade is that my max risk is limited to my debit ($1.66 per spread) and my max reward is about 5 times that.
