Weekly Lotto Trade Commentary -  AAPL

 

These are the results from trades suggested on our "Current Plays" list.

Note: they are suggested entry and exit points! disclaimer   Profits Up!!

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LAST UPDATE: 9/21/12

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Archived Plays

 

 

 

Play Recommendations: Play 17

(Weekly Calls)

Lotto Weekly Options:

 

SepWk4 - Pending

 

Monthly Options:

 

Sep 690 calls (Closed)

 

My current trade on AAPL:

 

 

 

9/19/12 - Still holding onto $700; however, this morning's dip hit my stop and closed out my trade. I will look for another entry point to get in again. There was quite a bit of selling into the close so this could be the anticipated pull back many are looking for and that certainly will be a BUY event when it happens.

 

 

 

 

 

 

 

Profits Up!

The donFranko

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9/17/12 - $700 and not looking back! Apple closed just under $700 and is now at $701.44 in post market trading. This is a good sign for a continuation gap tomorrow, but anything can happen as you know. With this stock running with the wind, you just have to buy and go with the flow at this point.

Long and strong is the call on the news channels, but as usual, they are always looking for ways to NOT make any money trading this stock. It's so comical to me when I listen to these supposed "guru experts" yap yap yap....yawn! —Look, just put up an acceptable loss and get your trade on.

Once you are long this stock, you forget about that trade and start looking for opportunity trades to play around that position. If the stock fails, then you get short or buy puts. If it keeps on rocking, then you play the direction but just keep the original play going all the way to the end of expiration or the profits you want to take.

If you read my training section A Month In the Life of an Option, you will get valuable insight on how options volatility moves with a stocks price movement. When you are trading a stock like AAPL, the options will have very wide swings from day-to-day, so you just need to pick your spot and hold on until you either get your profits desired or the play simply does not work out. The trick here is to trade around your core position with other options and/or strategies.

Once your options are solidly ITM, you need to follow up with a trailing stop 55% under the current price to keep locking in more profits. Do not run the stops too tight because the implied volatility in the options will swing too much and take you out of a profitable growing trade. Just stick with your trade until you are satisfied with your gains and then take them. If you still see the train moving, jump in and buy another position on a dip.

As the weeks move forward heading into their earnings release on 10/16/12, you can bet your bottom dollar there will be plenty of volatility to capture quick profits with and as always, I will be placing Lotto Trades on Thursday each week.

 

 

 

 

 

 

Profits Up!

The donFranko