AAPL Moves Higher & A New Month Tomorrow

AAPL moved strongly higher today while the rest of the Nasdaq was weak.  This is odd because AAPL (up 1.45% today) makes up over 20% of the Nasdaq index (up only 0.04% today). 

Today's jump triggered some inquiries about our open Iron Condor using weekly options; the call were what was on people's minds specifically.  I expected filling of the gap up to $350 when the trade was opened and there is still some good distance before the short call of the credit spread is threatened. However, the release of the iPad2 on Wednesday could make up the distance quickly. 

The good news is that if Wednesday's news release does indeed approach the short call, new weekly options will be available the next day (Thursday) to provide adjustment possibilities.  Of course monthly options are always available for adjustments as well.  So, ample opportunities exist if things get a little tight.  Time decay (the Greek Theta) will continue to work in our favor and erode the premium of the calls between now and then as well.  But never fear, I will be watching closely and ready to pull the trigger on an adjustment if needed.   

I was analyzing a new SPY call position today as well but wanted to wait for the usually bullish first day of the month tomorrow to complete the setup of the trade.  Stay tuned........

 

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