In my most recent post titled “Following the Trade – AAPL Trade Adjustment on Friday 2/15” I detailed the ongoing trade that I have on in AAPL. In this post I won’t go into full detail on the trade, reasons for, and adjustments but here are the links in chronological order of those details stated:
- 2/5 – Utilizing Market Comments From Other Traders (put on March 460-480-490 Call Broken Wing Butterfly (BWB) for 4.25 debit)
- 2/11 – Trade Adjustment – APPL (added Feb4/Feb 460 Put Calendar for 1.60 debit)
- 2/15 – Following the Trade – AAPL Trade Adjustment on Friday 2/15 (recap of all the trades and closed the Feb4/Feb 460 Put Calendar for 4.09 credit (+$249.00, +155.6%) and added Feb4/Mar1 440 Put Calendar for 1.69 debit)
Today I closed that Feb4/Mar1 440 Put Calendar in the morning for a 4.40 credit (+$271.00, 160.4%), trade order below:
I wanted to take advantage of the morning weakness and just close out this hedge to the main Broken Wing Butterfly that I had on. With the gains in the 2 calendar trades I put on, the remaining trade of the original BWB is a risk-free trade at a $95 credit. I do not plan to add anymore hedging strategies to this trade and instead will ride out the BWB more and likely to near expiration. In a perfect world AAPL would shoot past then retrace to the 480 level around March expiration, 22 days.
Below is the new risk profile, same look as the original trade with different risk/reward:
Now I sit and wait until March expiration. I could keep adding a hedging strategy but with those 2 calendar trades I am happy with the risk and will let AAPL do its thing leaving the long bias trade on. Below is a trade history:
