Associate Jim’s Trade
Trade: Selling 15 WAG Oct 37-38 Call Spread for $0.35
Risk: $65.00 per 1 lot
Reward: $35.00 per 1 lot
Breakeven: $37.35
Notes: The stock has sold off the last 3 times after earnings and I don’t think it will break its 52 week high of 36.85
Associate Alex’s Trade
Trade: Buying Weekly AAPL 685-695-700 broken wing Call fly for $1.15
Risk: $115 per 1 lot
Reward: $885 per 1 lot
Breakeven: $686.15
Notes: I like this trade because when Apple makes big moves, it generally follow the same trend for a day or two after as we saw with this dip. I only need Apple to move up a third of the price it moved today to break even and if Apple explodes upwards past the upper wing of the butterfly, I will still make money, though less than if it stops at the body.
Alex has a master’s degree in economics from Suffolk U.
Jim has a BS in Finance from UIUC.