A Remarkably Safe Way To Play The Apple Earnings Announcement

Apple announces earnings Wednesday after the close and I have come up with a strategy that looks like it can make a decent gain for the week (ranging from 5% to 15%) with almost no chance of incurring a loss. 

The big downside of the strategy is that it requires an investment of about $16,000.  I understand that many subscribers are looking for less costly option investments.

 However, if you can afford an investment of this size, check out the Seeking Alpha article I wrote just yesterday. 

Terry 

Here is the link – A Remarkably Safe Way To Play The Apple Earnings Announcement 

This is the third week in a row that I have offered a strategy centering on the unusually-high option prices in the series that expires just after an earnings announcement. 

The first play was for Wells Fargo – How to Play the Wells Fargo Earnings Announcement for Tomorrow.  This one gained 44% after commissions. 

The second play involved eBay – How to Play the EBAY Earnings Announcement.  I waited too long to close out my spreads this time around (many subscribers gained 24% or more).  But I did manage to make 11.6% after commissions, still not a bad week. 

I think this week’s earnings-announcement play is the safest one yet in spite of the high cost  requirement.  I am also sharing with paid subscribers a most promising play in Starbucks (SBUX).

Tags: AAPL, Calendar Spreads, Credit Spreads, earnings announcements, Earnings Option Strategy, Earnings Play, ebay, implied volatility, intrinsic value, Profit, profits, Risk, Stocks vs. Stock Options, Straddles, Strangles, Terry's Tips, thinkorswim, VIX, Volatility, Weekly Options, Wells Fargo, WFC

This entry was posted on Tuesday, January 22nd, 2013 at 5:10 pm and is filed under AAPL, Earnings Announcement Options Strategy, Last Minute Strategy, Stock Option Trading Idea Of The Week, Stock Options Strategies, Terry's Tips Portfolios, Weekly Options.