Apple stock just had its best day in five weeks as John Ternus took over from Tim Cook as CEO, becoming just the company's third chief executive this century.
The rally has pushed Apple away from a support zone near $310 and back toward its late-July record area near $340 — giving shareholders a natural way to define both their downside and upside with options.
Apple (AAPL) was trading around $325 early this week, almost exactly halfway between those two levels. That sets up a strategy known as a collar.
A collar isn't a standalone options bet. The investor must own 100 Apple shares — either already held or bought outright — and then layer the options on top. In this case, that means buying one Sept. 18 $310 put and selling one Sept. 18 $340 call.
With Apple at $324.77 when the trade was priced, the $310 put cost about $2.17 per share, or $217 for one contract. The $340 call brought in about $2.12 per share, or $212.
#sept #near #collar #cook
The rally has pushed Apple away from a support zone near $310 and back toward its late-July record area near $340 — giving shareholders a natural way to define both their downside and upside with options.
Apple (AAPL) was trading around $325 early this week, almost exactly halfway between those two levels. That sets up a strategy known as a collar.
A collar isn't a standalone options bet. The investor must own 100 Apple shares — either already held or bought outright — and then layer the options on top. In this case, that means buying one Sept. 18 $310 put and selling one Sept. 18 $340 call.
With Apple at $324.77 when the trade was priced, the $310 put cost about $2.17 per share, or $217 for one contract. The $340 call brought in about $2.12 per share, or $212.
#sept #near #collar #cook
2 months ago
