Option Traders get in here. Made a small fortune off Apple. Do I stay in?

I deal with options I’m small time and can do only as much as my wife will allow. Back in June I took out (2) options at $3.15 a piece for Apple to hit $240 by January 31... Got semi-cold feet and sold one of them in October, but I kept the other one and sold it last week for 5 grand. In between that time I’ve taken out all kinds of options with strikes of $300, $317, etc all ending January 24th thru 31st. I’m about to sell them and reinvest the profits putting at least half the profits into $350-$420 strike prices that end June of 2020.

I read one prediction of a 40% pullback. Is this a short seller serving his own interest or do I go with Apple?

Man sorry about the typos wow

Apple will roll again this year brother. So you bought the options at $320 total per option and made 5k? That's stellar.

imo, is best to treat investing as math...cold. emotionless. black and white math.

figure out where to enter..and where you want to exit.
thats it.
what a trade did for you in past or how much $$ you took from the market is 100% irrelevant to future trades.

if anything treat the noise of people crying about civilization collapse @ bottoms..or bragging about their new porsches @ the tops as just ones of the dozens of signals/indicators you have to decipher (or ignore)

'member the saying..

quote:

---

Bulls Make Money, Bears Make Money, Pigs Get Slaughtered

---

politics are involved and there is mucho liquidity being injected directly into the market.

right now.. this is not a true market.

is tough being a bear nowadays...bulls continue making $$ and pigs are being rewarded.


it appears the powers that be want the natural boom/busts of a market cycle replaced with a stock market that only goes one one way.. up. up. up.

..and they are getting their way.
current policies definitely affects trading behaviors.




concerning apple.. i think it is a visible company..is is owned by practically every trading desk at every fund/bank

i think it is safe to think they should continue benefiting from qualitative easing regardless of their earnings or products or really anything they do or dont do.

now... buying LEAP calls instead of the actual stock is interesting.

i've never done it...but i can see the benefits.

quote:

---

I only see AAPL weeklies available as far as 7 weeks out

---

you may want to update(upgrade) your broker (and/or trading permissions)

i went out 745 days and AAPL calls expring jan 2022 are available..at reasonable spreads (ie is a liquid market)


hmm...
by buying options...imo we are basically buying "time" to leverage our money.


a jan 2021 ATM call is trading at ~$32
rough calculation you'd need AAPL to increase in price ~ 11-12% JUST to pay for that time (ie time decay...and assuming you sell ~45 days to expiration)
10-12% gets us even...
if it increases more? well thats why people buy calls.

can AAPL increase 12% in price in the next 12 months?
recent history says yes...or maybe "maybe".

hmm..

1+ year options are interesting..
as someone that that sells "time" premium (put options primarily).. i have zero interest in selling that far out. not worth it to me.
(so maybe.. it is beneficial to be a buyer of long tem options. idk)

Apologize for derailing the thread a bit, but can any of you guys point me in the direction of some good resources for learning about the complexities of options trading?

I understand the basics, but I see you guys mentioning condors, etc and it feels like freshman year when I skipped the whole first week of school

You can read all you want about options, but until you play the game, you won't quite understand it.

fair enough..
i was wondering why you were talking about weeklies..
(i didnt see any mention of weeklies...at least not in the original post)

but also..
i freely admit that i didnt actually look very closely at the posts or care enough to be suspicious or not.

i also admit i'm not a finance professional and i have literally *zero* formal business training.
..so there is much i dont know (which again was why i felt a conversation on LEAP was(is) worth having)

You’re missing the services side that is going very fast

Edit: also their massive stock buyback

Always buy Apple as a long term investment. I said that five years ago hereon and have said it up again from time to time.It’s a great company, with a reasonable PE. I try to buy 10 shares a quarter.
You traded it so that’s different and you made money on your trade. That’s a big plus for you.