January 14, 2020  Terry’s Tips Trade Alert   – Earnings Eagle  portfolio

 

AAPL reports on January 28 after the close. It’s a little early to calculate what the options are pricing in, but the recent average move was 4.8%.  We will start a bit early with the upside-leaning spreads.  These prices seem awfully cheap:

 

BTO 1 AAPL 20Mar20 315 put (AAPL200320P315)

STO 1 AAPL 31Jan19 315 put (AAPL200131P315) for a debit of $4.83  (buying a calendar)

 

BTO 1 AAPL 28Feb20 317.5 call (AAPL2002283C317.5)

STO 1 AAPL 31Jan19 317.5 call (AAPL200131C317.5) for a debit of $2.83  (buying a calendar)

 

BTO 1 AAPL 20Mar20 320 call (AAPL200320C320)

STO 1 AAPL 31Jan19 320 call (AAPL200131C320) for a debit of $4.72  (buying a calendar)

 

BTO 1 AAPL 20Mar20 325 call (AAPL200320C325)

STO 1 AAPL 31Jan19 325 call (AAPL200131C325) for a debit of $4.56  (buying a calendar)

 

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry