Day trade
Trade view / 26 May 2016 at 14:13 GMT

#SaxoStrats: Taking profit on Apple June16 95/100 Call Spread

Head of Futures & Listed Options / Saxo Bank

Since we bought the June16 95/100 Call Spread on May 17 Apple had a nice ride and almost reached the upper strike of the Call Spread. In addition, stochastics are overbought.
Let's take our profit in selling back the Call Spread.
Apple Daily Bar Chart
 Source Saxo Bank

Management and risk description

Entry: Sell back the June16 95/100 Call Spread (we bought at $1.36 on May17) at $3.27
=> Sell back the June16 95 Call at $4.85
& Buy back the June16 100 Call at $1.58

Profit = Exit Price - Entry Price
= $3.27 - $1.36
= $1.91

Return on Investment
= Profit/Premium Paid X 100
= $1.91/$1.36 X 100
= 140%

5-year chart
Apple Daily Bar Chart 5 years
 Source: Saxo Bank

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
26 May
Ramug65 Ramug65
26 May
Georgio Stoev Georgio Stoev
Nicely done
26 May
mmeniru mmeniru
I used a similar spread and all good


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