VIX6 – AAPL Trade
Good day Insiders,
The market finally decided to trend lower and volatility has made an appearance once more. Though I am not convinced the worst is over, I am going to be watching for where we close here for the week. The level I am going to be looking for is a close above or below 2740 in the SPX. If we close above it, we could see buying comeback, a close below and a test of support at 2700 could be in the cards. During the selling we have seen of late, Apple has held up quite well, it is with this that we are going to place the following trade in AAPL IF the SPX closes above 2740 for the week.
Selling the 167.5-162.5 put spread for March 29 expiration here. IF the SPX looks to be closing above 2740 for the week.
Risk & Reward
Our trade will use $4150 in margin and so long as AAPL holds and stay above 167.5 we will look to yield a 20% return on capital. For those position sizing, adjust the number of contracts fitting to your risk. For example, 5 contracts will use $2075 in margin and yield $415 in profit.