Stock / Symbol: Apple / AAPL
Price at trade post: $584.60
Option Strategy: [private_monthly]iron condor[/private_monthly]
Reasoning: The probability of success on this iron condor on AAPL is over 80%. If AAPL hits our upside or downside breakeven points prior to May expiration, we'll stop out of the trade. Profit range is between $540 and $615 by May 18 and yields over 30%. [/private_monthly]
Trade Details:
[private_monthly]
STO -2 May12 615 calls
BTO 2 May12 620 calls
BTO 2 May12 535 puts
STO -2 May12 540 puts
for a min net credit of $1.20 per contract, but try for the mid of the spread first. (current bid $1.14 / ask $1.47) (day order, limit order). If you're not filled today, try to get filled tomorrow but not after that.
Requirements:
Cost/Proceeds ($240)
Option Requirement $1000
Total Requirements $760
Estimated Commission $12.95
[/private_monthly]
Max Risk: $760
Max Reward: $240 or 31% by May 18
Profit Range: between $540 and $615 by May 18
Suggested Downside Stop @ $540
Suggested Upside Stop @ $615
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