Unprofitable: I lose money on this trade if AAPL closes above $601.55 July 15, 2012. The most I can lose on this trade is the amount the Spread can be worth $5 minus the price I sold it for $1.55 for a total of $3.45.
Reason I Like This Trade: I like this trade, because I can make money if AAPL sells-off, is flat, or goes up by less than 5.5%. I think that AAPL will not have too much exciting news next week at their Conference on San Fran and I want to take advantage of this.
UPDATE 6.8.2012 With AAPL rallying a little higher, this Spread is currently $1.55, bc the premium has come in. I think AAPL will sell-off after the WWDC.
UPDATE 6.9.2012 With AAPL rallying higher, but time is on my side, This Spread is now worth $1.90. I might add if the stock moves higher from here.
UPDATE 6.13.2012 With AAPL selling back off after the WWDC this Spread is back to being worth $1.55. I will leave this on until further notice.
UPDATE 6.27.2012 With lack of conviction in AAPL this Spread is worth $.90, but I am leaving it on for more future profits.
UPDATE 7.2.2012 This is why I am a premium seller, because this stock is moving higher, but the Spread is decaying away. This Spread is still only worth $1.70.