This is exactly what I was afraid of with AAPL as a 34% options gain can disappear or be substantially reduced pretty quickly. It's not so much the move down at the yellow arrow, but in fact the loss of volatility/momentum which is part of the pricing, the better the volatility, the better the price, you can have higher price tomorrow with flat volatility and have options worth less tomorrow.
The part that I don't mind taking a chance on missing is the red resistance zone being created, AAPL can still break above that and if it does, it will likely be a strong and volatile move, this is why I wasn't dead set on closing it, just in my particular circumstance.
There's still what appears to be gas in the tank for AAPL, although that is one of the timeframes I mentioned that could go wither way and may in fact be representing a longer, bigger trend that must see AAPL pull back to form a larger intermediate base.
If AAPL does break out on a volatile move, you might consider taking some partial profits, hopefully I'll be able to cover it real time.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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