Reasoning:
1) Technical indicators are showing sell signals and chart is showing a stagnant trend in the short term. Long term trend is bullish.
2) Fundamentals still strong. I don’t see much further downside. Stochastic is over sold and we are near support.
3) Given the short term sell off in the market this may be a buying opportunity long term. AAPL is approaching value territory in the mid 300′s.
Expectation is for a bullish to stagnant trend.
Entry Point:
BTO Feb Long Call Strike 410
STO Dec Short Call Strike 410
NET DEBIT of $12.00
Exit Points:
Primary Exit (PE): Reduce cost basis to zero. Short term- Let short call expire worthless
Secondary Exit (SE):
Bullish: Roll short call.
Bearish: Exit if stock trends below support around 355.
Trade filled on 11/22.
12/20: DEC call expired. Sold Jan 410 for $6.25. Net debit is now $5.75
1/3: Closed trade. Sold spread for $8.15 credit.