Short term
Trade view / 27 April 2016 at 12:03 GMT

#SaxoStrats. UPDATE: Taking profit from Apple put

Head of Equity Strategy / Saxo Bank
Denmark
Instrument: AAPL:xnas
Price target:
Market price:
Saxo Strats banner
 
Background

In anticipation of Apple's fiscal second-quarter results, we introduced an options strategy on Tuesday to take protection with a long Apple put. After Apple surprised the market with weaker-than-expected results and downgraded its third-quarter revenue guidance, the stock (AAPL:xnas) fell sharply, and this strategy with the June 17 put (AAPL/17M16P105:xcbf) has paid off well.

Management

We are closing the position when the US cash equity market opens. We will close it through a limit order, which is best way to protect your execution in the US equity options market.

The current price on the option pre-market is around $10 – so the gain is around 150%.

There is no pre-market trading so this the estimated fair value based on option models .



— Edited by John Acher

Non-independent investment research disclaimer applies. Read more
4y
JOSHUA63 JOSHUA63
The first relevant gain in months. Well done!
The next shoe to drop could be Daimler if Doj and Epa discover something wrong!

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