Earnings Beat – AAPL Trade Update #1

Market Context
Good day Insiders,

Apple Inc reported their earnings last night and as expected, there was little to be negative about with AAPL having cut sales numbers of the iPhone, the stage was set. Earnings came out and it was a beat, at the time of this update the stock is up 4.8% trading at 162 and change. So what happens from here? Recall the margin we used in placing the unbalanced condor and selling of the put spread? It is time to get that back.

The Trade
We will place an order to buy the 138 puts back. This will free up half our margin (the remaining being with the unbalanced condor).

Risk & Reward
The beauty part here is that we are free and clear to let AAPL move as it so chooses. If (though unlikely to that magnitude) there is an absolute scare in the markets with the Fed speaking and more talks on tariffs, AAPL could get hit. If I had to pick a direction in AAPL, I would say higher as there will likely be short covering (Investors and traders who were short the stock being forced to buy it back) on the horizon.