<p>Maybe this makes it more understandable if aapl closes at 550 on May 19th:</p>
<p>480 call is worth 70, paid 111.55, loss = -41.55
650 call is worth 0, received 10.17, gain = 10.17
590 put is worth 40, paid 32.52, gain = 7.48
550 put is worth ~0, received 16.03, gain = 16.03
total = -7.87</p>
<p>I guess this kind of threw me…</p>
<p>“At 550 on May 19th, the breakeven for me is 597.87. Max loss to 550 at expiration is 597.87 - 590 = 7.87. If it goes to 550 tomorrow, the loss = 20, My max loss if it drops to 0 is 117.87 - what I paid. I doubt that will happen”</p>
<p>Edit…the 177.87 loss…</p>
<p>If you want to trade in Apl…</p>
<p>You can buy 5 dollar or 10 dollar put spreads…</p>
<p>And you buy more of those spreads than you have on…</p>
<p>For example…you have your position on 1 time…</p>
<p>You buy the apr 545 puts— sell the 535 puts spread 7 times…or times…whatever works for you…</p>
<p>You don’t like the cost…you sell some out of the money call spreads to
cut the cost…</p>
<p>Or you sell otm put spreads…in may …like the 430 --420 put spread…</p>
<p>You will have risk but the stock really has to get hammered…</p>
<p>You can play…and see what works for you…</p>
<p>You can also sell the out of the money put spread against the butterfly…</p>
<p>To lower your loss point…</p>
<p>The butterfly is long 1 550 put, short 2 515 puts, long 1 480 put?</p>
<p>“Better results playing craps, where the booze is free…play the pass line, back it with full odds, and play the 6 and 8…”</p>
<p>Well…maybe for you…but I think the booze is having an affect on you qdogpa…</p>
<p>Yes…doct.</p>
<p>Like I said if you don’t like that…</p>
<p>You can buy put spreads that are near in the money and sell put spreads more out of the money…It will cost you a little but lower the price where you really start losing…</p>
<p>the 50 day mvg for aapl is 569 and support is around 550. I’m too tired to think about this tonight. I probably am ok through most of Tuesday.</p>
<p>Np…if you don’t think the stock is going below 550… Then you don’t have to do anything…</p>
<p>You don’t have to do anything…anyway…</p>
<p>Ok…just to be clear…you have risk of 77.87 if the stock drops below 480…</p>
<p>The butterfly doesn’t really cut the risk…it just changes where you lose money…</p>
<p>Just graph it out…</p>
<p>Buying put spreads Can cut your losses but there is a cost as you know…</p>
<p>I don’t know if I would do the butterfly…now that I think about it…</p>
<p>Forget the butterfly…</p>
<p>My response was Freudian… :)</p>
<p>You were right…put spreads can help you the most…</p>
<p>I like what you said. I think buying an april put spread and selling an otm May put spread looks pretty good. Buying the 545 - 535 spread is ~3.00, selling the May 480 - something reduces it < 3.00. I’ll be playing around with this tomorrow.</p>
<p>Yeah…that is better…</p>
<p>Sorry about the butterfly crap…</p>
<p>"Will do, dstark. Of course yes, he is a genius. On good days.</p>
<p>Lets not talk about all the Lehman Bros stock that we were holding when…"</p>
<p>I missed this jym626…</p>
<p>That’s nice that your husband is a genius on some days…</p>
<p>You owned Lehman?</p>
<p>Yeah…that kind of sucks…</p>
<p>I owned AIG…</p>
<p>Kind of sucked. ;)</p>
<p>Don’t rub it in, dstark. We owned a LOT of Lehman. Thank heavens for capitol losses</p>
<p>Strikes were added to the weeklys in Aapl…</p>
<p>I wish more were added…</p>
<p>And as of 7:30 p coast time …they haven’t traded…</p>
<p>I just love getting punched in the face - I’m definitely “dumb” money right now.</p>
<p>I think Aapl has bottomed for the next 2 days…</p>
<p>I have small orders but nothing is getting filled…</p>
<p>I had HPQ when it crashed.</p>
<p>Today I closed out my position in K and added to MCHP, SDRL, and ABT on the dip.</p>
<p>I bought the April 545 - 535 put spread and sold May 450 puts in aapl</p>
<p>You are quite a busy investor, psychmom.</p>