Trade idea
AAPL credit spread
The trade involves a short credit spread on Apple (AAPL) with the 220 calls short and 235 calls long. The strategy is based on the assumption that the stock will remain above 320, and the trader is bearish on the stock. The trade is managed by staying in the position unless the stock price moves significantly against the trade. The trader suggests that if the stock price is above 320, there is nothing to do, but if the stock price is below 320, the trader can sell out of the money put spread against it. The trade is considered a credit spread, and the trader is looking to collect the premium from the spread.
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Strategycredit spread
Assetstock
ExpirationAugust 21st
Time horizonUntil expiration
Entry / triggerStock price above 320
Target / exitCredit received from the spread
Invalidation / stopIf the stock price moves significantly against the trade
SpeakerMark
Structure / legs- short 220 calls
- long 235 calls
Risks- If the stock price moves significantly against the trade, the trader may lose money
- The trade is subject to the expiration date, and the trader may need to adjust the position if the stock price moves significantly against the trade
Trade idea
AAPL Put Selling
The speaker suggests selling out-of-the-money puts on Apple (AAPL) when volatility is high, as this allows the trader to capture higher premiums. The strategy is based on the assumption that the underlying asset will not decline below the strike price, and the trader will profit from the premium. The speaker emphasizes the importance of selecting a delta that aligns with the trader's comfort level based on the probability of profit, which is calculated as the inverse of the delta minus 100. The strategy involves waiting for the underlying asset to move sideways or higher, rather than waiting for volatility to settle down.
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StrategyPut Selling
AssetEquity
ExpirationNot specified
Time horizonShort-term, with the expectation of the underlying asset moving sideways or higher.
Entry / triggerWhen volatility is high and the trader has a bullish outlook on the underlying asset.
Target / exitProfit from the premium received if the underlying asset remains above the strike price.
Invalidation / stopIf the underlying asset declines below the strike price, the trader may be assigned and have to purchase the asset at the strike price.
SpeakerSpeaker
Structure / legs- Out-of-the-money puts with deltas of 20, 25, 30, 16, etc.
Risks- Risk of being assigned if the underlying asset declines below the strike price.
- Potential for lower-than-expected premiums if volatility decreases.
Trade idea
AAPL Poor Man's Covered Call
The speaker suggests using a poor man's covered call strategy for Apple (AAPL) by buying a long-term LEAP at the money and selling a front-month call. This allows for premium collection while holding the stock, with the ability to roll the front-month call monthly. The strategy is designed to be flexible and adaptable to market conditions.
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StrategyPoor Man's Covered Call
Assetstock
Expirationfront-month
Time horizonLong-term, with monthly rolling of the front-month call
Entry / triggerBuy a long-term LEAP at the money and sell a front-month call
Target / exitCollect premium while holding the stock
Invalidation / stopIf the stock moves significantly against the position
SpeakerScott
Structure / legs- Buy a long-term LEAP at the money (e.g., 150 strike)
- Sell a front-month call (e.g., 165 strike)
Risks- Market risk if the stock moves against the position
- Time decay on the short call
Trade idea
AAPL covered call
The strategy involves being long 20 shares of stock and short 30 delta puts, which results in a net long position. This approach allows for collecting premium while maintaining exposure to the underlying stock. The example given is long 20 shares of Apple, with the potential to scale up to 100 shares through multiple trades. The strategy is designed to collect premium while managing risk through the short put position.
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Strategycovered call
Assetequity
Expirationnot specified
Time horizonnot specified
Entry / triggerlong 20 shares of stock
Target / exitequivalent of 100 shares of Apple
Invalidation / stopnot specified
SpeakerScott
Structure / legs- long 50 delta call
- short 30 delta put
Risks- Market volatility could impact the value of the underlying stock.
- The short put position may result in losses if the stock price drops below the strike price.
- The strategy requires careful management of multiple positions to maintain the net long exposure.
Trade idea
AAPL strangle
volatility is high and stock is expected to move $21
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Strategystrangle
Assetstock
ExpirationSE
Time horizonshort term
Entry / triggerpost earnings
Target / exitdelta neutral
Invalidation / stopif stock sticks around 300
Speakerunknown
Risks- adjust strikes if needed
- stock could move more than expected
Trade idea
AAPL put spread
contrarian play
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Strategyput spread
Assetequity
ExpirationSeptember
Time horizonshort-term
Entry / triggerstock price down 235
Target / exit235
Invalidation / stopstock price up
Speakerunknown
Structure / legs- September 295 put
- September 285 put
Risks- market volatility
- unexpected stock price movement
Trade idea
AAPL put spread
Apple's weakness after a downgrade could be exploited with a put spread
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Strategyput spread
Assetequity
ExpirationSeptember
Time horizonshort-term
Entry / triggerApple going lower
Target / exit266
Invalidation / stopmarket going higher
SpeakerScott
Risks- market reversal
- volatility changes
Trade idea
AAPL put diagonal
bearish on Apple
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Strategyput diagonal
Assetequity
ExpirationAugust 21st
Time horizonshort-term
Entry / triggerstock price lower
Target / exitrisk one to make one
Invalidation / stopvolatility collapse in front month
SpeakerTony
Structure / legs- August 21st 320 put
- August 3rd 310 put
Risks- volatility collapse
- unexpected stock movement
Trade idea
AAPL straddle
If you're going to trade the one-day option, that's completely different. If you have an open position on, it's going to be in May. So, you go to at least the expected move. I like to go to two times the expected move or one and a half times at a minimum. Knowing that earnings are on the horizon, would you back away from opening a new trade in that particular underlying prior to earnings? If you're going to put a trade on now and Apple is 2 weeks from today, you know, so you're going to look at 43 days, you know, you can go out to the 43 day, put your trade on, and then come 2 weeks from today, the day before earnings, as you said, modify as need be. So, if the stock has, you know, if the position's come in, you might consider taking it off and putting on something else. You know, if you like the position, from my perspective, it'd be the same thing. Move it to adjust it so that you're at whatever the, you know, the strikes from a standard deviation standpoint you want.
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Strategystraddle
Assetequity
Expiration2 weeks from earnings
Time horizon2 weeks
Entry / trigger2 weeks before earnings
Target / exit2 times the expected move
Invalidation / stopAdjust as needed before earnings
SpeakerUnknown
Risks- Volatility may increase before earnings
- Need to adjust position as earnings approach
Trade idea
AAPL Earnings trade
The speaker is considering selling puts against Apple's earnings, leaning towards selling the 57.5 puts with one day to expiration. The rationale is that the VIX is high, and selling premium early in the day is not ideal. The trade is expected to benefit from a potential rally, but the speaker is cautious due to the volatility and the need to avoid market shocks.
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StrategyEarnings trade
AssetEquity
ExpirationEnd of day
Time horizonShort-term
Entry / triggerEarnings announcement
Target / exitUncertain, depends on market reaction
Invalidation / stopMarket moves against the trade
SpeakerSpeaker
Risks- Market volatility
- Unexpected earnings results
- Liquidity issues
Trade idea
AAPL iron condor
The speaker suggests rolling the call spread to August 320-330 and adjusting the put spread to maintain a small credit. The reasoning is that the current price is slightly below the strike price, and rolling the position to a later expiration could provide more time for the trade to work out. The risks include potential losses if the price moves significantly against the position.
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Strategyiron condor
Assetequity
ExpirationJuly 24th
Time horizontwo weeks
Entry / triggercurrent price at 311
Target / exitsmall credit
Invalidation / stopif price moves significantly against the position
SpeakerScott Sheridan
Structure / legs- call spread: 300-310
- put spread: (not specified)
Risks- Price movement against the position
- Market volatility
- Time decay
Trade idea
AAPL call spread
The speaker suggests rolling a call spread to August 320 and 330 as a strategy when Apple's price is down to the 310 level. This is a short-term strategy that involves a small credit and rolling the position to August. The idea is to capitalize on the downward movement of Apple's price while managing risk through the spread.
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Strategycall spread
Assetequity
ExpirationAugust
Time horizonShort-term
Entry / triggerApple's price is down to the 310 level
Target / exitRoll the call spread to August 320 and 330
Invalidation / stopIf the price moves significantly against the short call spread
SpeakerUnknown
Risks- Market volatility could lead to unexpected price movements
- The spread may not perform as expected if the price does not move in the anticipated direction
Q&A
Will Apple beat revenue estimates in its earnings report this week?
The speaker believes there's an 80% chance Apple will beat estimates, but the stock's direction is 50/50.
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Actionable takeawayApple has a high probability of beating revenue estimates, but the stock's direction is uncertain.
Q&A
What is the current performance of Google and other stocks?
Google's stock is up nine bucks, making it the strongest stock of the day. AMD is up 42, Nvidia is up almost six bucks, and Apple is up almost two bucks. These gains indicate strong performance in specific stocks, though the overall market volatility is subdued.
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Actionable takeawayCertain stocks are performing well, but the overall market is showing reduced volatility.
Q&A
How can one construct a trade for Apple and Microsoft given their IV levels?
The speaker suggests using a poor man's covered call strategy for Apple by buying a long-term LEAP at the money and selling a front-month call. For Microsoft, the speaker is not long and suggests a long-term trend-following strategy instead of selling puts.
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Actionable takeawayUse a poor man's covered call for Apple and consider a long-term trend-following strategy for Microsoft.
Q&A
Will Apple close above 320 by Friday?
The speaker changed the question from closing above 315 to 320, and stated a 70% chance of closing above 320 by Friday.
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Actionable takeawayThe speaker is predicting Apple's stock price to close above 320 by Friday.
Q&A
What is the expected move for the Apple strangle trade?
The expected move is $21.
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Actionable takeawayThe expected move for the Apple strangle trade is $21.
Q&A
Do you like this trade?
Yes, the speaker likes the trade and provides details on the trade setup.
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Actionable takeawayThe speaker is positive about the trade and provides specific details on the trade setup.
Q&A
What's your favorite trade from the dog pound uh today?
The speaker lists several trades, including an Apple put spread (46%), Intel strangle (28%), Google broken wing butterfly, and a BU short put. The speaker also expresses a dislike for trading B.
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Actionable takeawayThe speaker recommends specific options strategies but also expresses a personal dislike for certain trades.
Q&A
What is the trade idea for Apple?
Tony suggests a put diagonal strategy for Apple, buying the August 21st 320 put and selling the August 3rd 310 put, with a bearish outlook.
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Actionable takeawayA put diagonal strategy is suggested for Apple with a bearish outlook.
Q&A
Are you doing anything in Apple for earnings?
The speaker has no Apple position currently and plans to do something in Apple, likely related to earnings, which are expected tomorrow.
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Actionable takeawayThe speaker is considering a trade in Apple ahead of its earnings, which are scheduled for tomorrow.
Q&A
What would be the best approach to manage an Apple iron condor expiring July 24th?
The speaker suggests rolling the call spread up and out to August, adjusting the strike prices to 320-330, and rolling the put spread to maintain a small credit. The reasoning is that the current price is slightly below the strike price, and rolling the position to a later expiration could provide more time for the trade to work out.
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Actionable takeawayRoll the call spread to a higher strike price and adjust the put spread to maintain a small credit.