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Tuesday, July 23, 2013

Fast money with APPL within 3 days

Apple (APPL) reported good earnings after the hours and the market loved what they heard. APPL shares are moving up after hours (around $440) and likely it will be trading high tomorrow. I really like APPL valuation at this price, which is very cheap. So I think there is a great opportunity to make some quick money (income) by writing APPL naked puts. Here is the one I think one can reasonablly expect to make money from within 3 days. APPL Jul 26 $410 put is closed at $6.44 per share today. It expires in 3 days on Friday this week. As long as APPL stay above $410 at Friday's closing, the put will expire worthless and the naked put writers will get the money full and clean, about $644 per contract (100 shares). If APPL drops below $410 on Friday, then one has to buy APPL but with a price equivalent to $403.56 per share. This is a big discount from its current price and I will be happy to own APPL at this price.


AAPL 26 Jul 2013 $410.000 put (AAPL130726P00410000)

6.44 Up 2.64(69.47%) 


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