Potential Option Plays for AAPL's earnings (Naked Put or BPS)

To take advantage of the high volatility, I plan on selling a naked put over earnings for either the $155 or $157.5 strike price for this Friday's expiration (February 2). Most likely the $157.5 strike for around $0.80.

A less riskier option (no pun intended) is to sell a BPS about $10 below the closing price for the same February 2 expiration.

If I get put the shares, I won't mind since it's Apple. They are only the largest and most profitable company in the world. Shares + a covered call to get rid of the shares is the back up plan.

تعليق:

I did not sell the $157.5 put, but looks like the trade would have worked fine since AAPL looks to close above $160 and the 200 day SMA.