Friday, January 11, 2013

What to do with the AAPL Calls

Looking at the SPY up +0.01% -as close to unchanged as you get and AAPL at $520.32 which knocks out weekly $520 puts, I'd say these weekly options are seeing more and more pins as volume in the market drops.

So if today was a pin and the Calls are down about 8% as I last saw, here's what I'm looking at that makes me say, "I think I'll hold'.

First the reversal I imagine isn't from a mostly flat day and down, I've even described what the candlestick I imagine looks like, in any case, lots of upside volatility early, lot of downside late.

 Toward the end of the day the 1 min goes positive in to  lower prices.


 The 3 min remains positive

 As does the 5 min

Thursday looks like a hammer with increased volume, those tend to be good reversals, however with an op-ex pin it's not going anywhere, so perhaps Monday as I don't see too much damage and late day positives in to lower prices.

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