Sold Apple LEAPS

Earlier I sent out a post reporting a trade I made yesterday. Also in that post I spoke about a few things I was looking to do today. I mentioned I owned 8 Apple LEAPS I’ve been holding since the stock did a 4:1 split. 4 of the 8 LEAPS I just sold. I owned 4 $95 LEAPS and 4 $110 LEAPS. I sold the 4 6/17/22 $95 LEAPS.

On 7/23/20 with Apple at $383 I bought 1 AAPL 6/17/22 $380 Call. I paid a $67.50 premium. A few weeks later the stock did the 4:1 split. Below is the original order for the 1 LEAPS.

7/23/20 – Buy to Open 1 AAPL 6/17/22 $380.00 C @ $67.50

The stock split on 8/31/20 and I ended up with 4 contracts of the 6/17/22 $95 Calls. My premium was now at $16.88 for the 4 contracts. I just sold these LEAPS for a premium of $47. This is a profit of $30.12. Remember, this is $30.12 per share. The 4 contracts are 400 shares. My profit from this position is $12,048.

AAPL 4:1 Split adjusted LEAPS Position

8/31/20 – Buy to Open  4 AAPL 6/17/22 $95.00 C $16.88 

1/21/21 – Sell to Close 4 AAPL 6/17/22 $95 C @ $47.00 

Profit +$12,048

I held this position for about 4 months and my Return on Investment (ROI) is 178%. This is the power of buying LEAPS, long term options. 

This position still had a year and a half until expiration. Most readers know I like to take profit. Believe me, I’ll be putting this money back to work. Also, remember I still own more LEAPS with AAPL. I still own 4 AAPL 6/17/22 $110 Calls. I’d love to grab another $12K on that position. Which can happen. Apple is still moving. Right now this position has a profit of $7000.

If you have any questions concerning this position send me an email.

Successful trading,

Steve

The Options Coach