Managing a long-term position

I have had a position in $AAPL since May 21, 2012 in my IRA. I was fortunate enough to sell some above the $700 level on 9/17 & 9/21 leaving me with a 3/4 position.

One of the additional steps that I took is to utilize options to Collar up this position – something I do frequently – and it is because of this one step that I have been able to manage the decline in the underlying stock price.

Today, I find myself with the following components:

  • Long a 3/4 position
  • I own the November 610/600 Collar. This means that I am short the November 610 Call (covered) and long the November 600 Put. This most recent collar was put on October 26 for a debit of $2.40

I have initiated a total of (6) different option collars along the way and although they are work to manage, they have softened the pullback in shares – and in some cases the unwind process produced an additional boost to any profit on the collar.

I now find myself evaluating the long position to determine if I want to remain in the position or just close the trade entirely. The November 600 Put is selling for $32 here so the move under the $600 level is softened well. The stock continues to struggle in finding a floor.

This November collar expires next Friday so I have until then to decide. More to come.


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