Monday, February 8, 2016

Apple Calls

February 8, 2016 (see update on February 9, 2016 below)

During trading today, I like an Apple, symbol AAPL, call.  See the table below.

Apple has a strong balance sheet and a 2.2% yield on my most current basis.   To be included in my 2016 portfolio, the yield has to be 2.75% so you will not see AAPL show up in that portfolio.

Yet, the trade today was fascinating.  I put in a limit price of $93.75 when it was trading around $94.10 and when I returned from my meeting, the trade executed at $93.75 (2 PM Eastern time.)  AAPL closed at $95.01.  I don't really care about immediate gains.   They are like sugar highs.  I do care about income potential which is why I like the dividend and call opportunity of Apple.

Tomorrow I will monitor the market for as good as or better than the call available on 2/8.  

M* TheMoneyMadam

Long AAPL with calls

February 9, 2016 Update

Executed the May 20, 2016 $105 call at $2.30 per contract.