The problem I believe is that Dan’s solution to lower the cost by selling calls requires the trader to own 100 shares of apple to sell one call. Therefore before the intitial trade of buying the 680 calls the trader needs to own shares in order to reduce costs if the trade goes against him. This little fact was not mentioned. Unless I am misunderstanding the rules for selling calls which is of course possible.
dan the man, long winded, but good job.
It just reinforces how difficult AAPL is to trade. Timing is everything! glad I sat on my hands today.
Dan, great video. $AAPL may turn around tomorrow and go to the moon or maybe not, but your advice was priceless.
Thanks.
The problem I believe is that Dan’s solution to lower the cost by selling calls requires the trader to own 100 shares of apple to sell one call. Therefore before the intitial trade of buying the 680 calls the trader needs to own shares in order to reduce costs if the trade goes against him. This little fact was not mentioned. Unless I am misunderstanding the rules for selling calls which is of course possible.