Trade Update $AAPL – Closing Dec Ratio Call Spread for Almost 3x What I Paid

Trade Update Nov 13th, 2012: AAPL is up about 1% since I Friday morning when I bought the Dec 1×2 Call Spread detailed below, even with the stock stuck in a fairly tight range, the options structure is up more than 3x what I paid for it due to the collapse in implied volatility (Please read CC’s “Anatomy of a Trade” post here).  

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Original Post Nov. 9th, 2012: New Trade $AAPL –  Playing Sentiment Shift For a Near-Term Bounce

The sentiment shift in AAPL over the last month and half has been fascinating to say the least. From the Euphoric all time highs (~$705) on the day of the iPhone release on Sept 21st, to this morning’s six month lows in the stock, down ~25% from the highs.  We have been fairly cautious on the stock for a while now, we had been wrong on the price action, and frankly pulled the plug on losing bearish trades in the Spring, but the reasons for our previous caution are now starting to play out (and there are a lot of them).  Now that we can’t find a single pundit who wants to buy it, analysts who have gotten a tad more cautious, and investors acting a bit panicky we want to take a shot that the stock might have made a short term bottom and play for a very short term bounce.  

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