Just a brief post on what I have been up to in my $AAPL long position in the IRA. Last week I sold 25% of the position (2 different exits) and came in to this week looking to sell some Puts. Why? Here is why. Since I am down to a 3/4 stock position, I want to look for a spot to build the position back up. One way I do that is by selling Puts. If I am wrong, too early for example, I get paid to be wrong (by taking in the premium). This is what I have done this week:
- I sold the September 28 weekly 660 Put on 9/26/2012 for $4.05
- This was a 1/4 position
- This gives me some premium
- If Put the stock, my cost basis is 655.95
Today I got a chance to buy back the September 28 weekly 660 Puts that I had sold – I bought them back for $1.35. My next step is to look at selling some October 5 Puts now.
Slice, and Dice.