Monday, April 12, 2010

Today's AAPL Trade

I am putting my money where my mouth is and making a bearish bet on AAPL today.

The order filled today: Sold May 10 260/270 call spread for $1.65 credit.

This is a very short term bet that AAPL will remain below $260 or go lower ahead of earnings this month. There may also be a possibility to make another bearish bet in the day or two immediately before earnings when IV usually reacts favorably for option sales.

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