by Das Brain
As promised, here are a listing of option trades I made on Apple (AAPL). Apple’s stock and option contracts are great to trade when it experiences some weakness. When the stock price takes a hit down to near its stock price major support level, and all the technical indicators (MACD, Forecast Oscillator and DMI) on the chart looks to be all in line, I have been buying some DITM CALL option contracts, then selling the options when it rises near AAPL stock price resistance level. Today, AAPL was down in early trading about $5 or 4% to $137.50. However, it has come up a bit since.
Sometimes, I would sell the entire amount of CALL option contracts that I bought for a profit, and sometimes I would sell off a little bit at a time, and letting the rest of the CALL option contracts ride the upward trend. Take a look at the table and charts below to get a sense of how I played Apple’s (AAPL) options.
|
Profiting From A Boucing Apple ( Apple Stock) Using Options
|
|---|
|
Date
|
Symbol
|
Buy / Sell
|
# of Contracts
|
Price
|
Comissions
|
Profit / Loss
|
|---|---|---|---|---|---|---|
|
June 12
|
QAAJC
|
Buy
|
6
|
14.53
|
37.47
|
|
|
June 27
|
QAAJC
|
Sell
|
3
|
15.30
|
13.74
|
|
|
June 27
|
QAAJC
|
Sell
|
3
|
15.20
|
13.74
|
$364.79
|
|
June 13
|
QAAJB
|
Buy
|
2
|
17.60
|
15
|
|
|
June 27
|
QAAJB
|
Sell
|
1
|
18.60
|
15
|
|
|
June 29
|
QAAJB
|
Sell
|
1
|
18.50
|
15
|
$145
|
|
June 20
|
QAAJC
|
Buy
|
2
|
16.20
|
12.5
|
|
|
June 21
|
QAAJC
|
Sell
|
2
|
16.80
|
12.5
|
$95
|
|
June 29
|
QAAJC
|
Buy
|
3
|
14.80
|
13.74
|
|
|
June 29
|
QAAJC
|
Sell
|
3
|
15.30
|
13.74
|
$122.50
|
|
June 28
|
QAAJB
|
Buy
|
1
|
17.80
|
15
|
|
|
June 28
|
QAAJB
|
Sell
|
1
|
18.60
|
15
|
$50
|
|
July 2
|
QAAAC
|
Buy
|
2
|
17.60
|
15
|
|
|
July 3
|
QAAAC
|
Sell
|
2
|
20.60
|
15
|
$570
|
|
July 9
|
QAAJC
|
Buy
|
2
|
21
|
15
|
|
|
July 10
|
QAAJC
|
Sell
|
1
|
22.70
|
0
|
|
|
July 10
|
QAAJC
|
Sell
|
1
|
23.60
|
15
|
$400
|
|
July 9
|
QAAAD
|
Buy
|
1
|
21.90
|
11.24
|
|
|
July 10
|
QAAAD
|
Sell
|
1
|
24.40
|
11.24
|
$220
|
|
July 10
|
QAAJD
|
Buy
|
2
|
20.20
|
15
|
|
|
July 10
|
QAAJD
|
Sell
|
2
|
19.90
|
15
|
$90
|
| July 10 |
QAAJD
|
Buy
|
2
|
19.80
|
15
|
|
| July 10 |
QAAJD
|
Sell
|
2
|
19.60
|
15
|
$70
|
|
July 10
|
QAAJD
|
Buy
|
2
|
19.20
|
15
|
|
|
July 12
|
QAAJD
|
Sell
|
2
|
19.90
|
15
|
$110
|
|
July 12
|
APVAF
|
Buy
|
2
|
18.60
|
15
|
|
|
July 12
|
APVAF
|
Sell
|
2
|
18.50
|
15
|
$50
|
|
July 2
|
QAAAC
|
Buy
|
4
|
18.70
|
15
|
|
|
July 9
|
QAAAC
|
Sell
|
1
|
25.60
|
11.24
|
|
|
July 11
|
QAAAC
|
Sell
|
1
|
27.80
|
11.24
|
|
|
July 13
|
QAAAC
|
Sell
|
1
|
28.40
|
11.24
|
$2521.28
|
|
QAAAC
|
Not Sold
|
1 Remaining
|
Contract
|
Worth
|
$3600
|
|
|
Total Profit
|
From Trading
|
Apple
|
Options
|
$4388.57
|
Have you noticed the trades that lost money, were mainly day trades, meaning I was trying to buy and sell Apple’s CALL option contracts on the same day (intraday). Sometimes I was successful, but most times it resulted in a loss as it is extremely difficult to day trade options. Not that it can’t be done, but it is hard.
So in total I have made roughly $4400 USD trading Apple DITM CALL contracts alone with 1 remaing contract currently worth $3600 expiring in January 2008. If I sold this now my profit from that 1 contract symbol: QAAAC would be about $1700, and if I add that to the $4400 it would bring the total profit from trading Apple options to approximately $6100 USD. Not bad for about a little over a month of work.
My results are not great compared to other full-time day, swing traders out there who may be bring in over $10,000 a month, but I am proud of my results because there was a lot of hard work behind those profitable trades. I read and studied four 200 plus page books, and I have only been doing this since May 2nd of this year.
So, after 4 months I’ve got the hang of it, but there is much more to learn. I’ve still got to read a lot more books and I have recently started evaluating charting software and trading systems. In about a year or two, I think I will be able to bring in a lot more on a monthly basis.
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[...] Is this a buying opportunity, hmmm…looks like it to me. For the regular readers of this blog, you know that I love Apple’s stock and have been profiting big on Apple’s (AAPL) CALL option contracts. Read my post “Profiting From A Bouncing Apple (AAPL)” [...]