Sold Another Apple LEAPS
Since Apple and Tesla announced their splits it has been a 3 week wild ride. Today I sold another Apple option and my split strategy is nearing the end. I must say the strategy worked perfectly, and I locked in a lot of money. I’ll be writing a report on the split process in a few days.
At the close yesterday I was completely out of Tesla and had a few apple positions left. I had a 20 contract Call to expire in January, and (2) 4 contract positions expiring is June of 2022.
I just sold the 20 contract position, but I probably hold on to the (2) 4 contract position long term.
The selling of the 20 contracts gave me another big profit added onto yesterday’s record day. I bought this position on 8/25, 1 week ago. It was a 5 contract position and after the split it became 20 contracts. I just locked in another $10,500 with this option. I invested $25,500 and my profit was $10,500. That’s a return of 41%. This is a great way to end the split process.
Post 4:1 Split “Sell to Close”
8/25/20 – Buy to Open 5 AAPL 1/15/21 $500.00 C @ $51.00
9/1/20 – Sell to Close 20 AAPL 1/15/20 $125.00 C @ $18.00
Profit +$10,500
After the split process I expect a “slam.” This is a pull back after a big run up. Tesla is down $12 today but Apple is up. After the slam I like to buy long term LEAPS to hold. I already have Apple, and might buy more. With Tesla I’m gonna look for the stock to get to the $450 area before I buy long term positions.
This has been a wild few weeks. I hope some of you participated. If not I hope you learned what a great tool LEAPS are for future positions.
I have a few more trades to report but I’m very busy right now. I’ll get them out as soon as possible.
Successful trading,
Steve
The Options Coach