Re: Apple puts July 21
could you go through that one more time please. i'm not as experienced trading options but i like the cut of your jib.
are you saying to write an october put at 105 and buy a july/august put at the same strike price?
working this through out loud, you gain the premium (small) from the sale of the long dated option (but the price would rise as implied vol jumped w/ that kind of drop if it happened as the intrinsic value passes to the buyer).
on the flip side though, as long as the move happens before expiry of your purchased option, you make money from that trade.
but look what happens between expiry of the long and expiry of the short... you now have the exact opposite of what you want, you're naked short something you think will fall (albeit not likely below 105). i much prefer the idea of being positively exposed to volatility, not negatively so.
so now what is the most efficient way to expose oneself to the OP's opinion (that apple will not deliver on the hype when the #s come out).
thanks,
Barron
PS- i may have misinterpreted your post so please correct me if i did. you used lingo i'm not familiar with so bear with me.
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