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Dan Nathan's Apple Options Strategy Ahead Of Earnings

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On CNBC's "Options Action", Dan Nathan spoke about an options strategy in Apple Inc. (NASDAQ: AAPL). He noticed that the implied volatility in the name is elevated, ahead of the earnings report on May 1 and he wants to sell a strangle to profit from a potential decline in implied volatility.

Specifically, Nathan wants to buy the stock and sell the June 180 call against it. He can collect $1 for the sale of the call and he also wants to sell the June 150 put for $2. The strategy would allow him a $3 downside protection and in case the stock moves higher, his selling price would effectively be $183.

Posted-In: Dan Nathan Options ActionOptions Markets Media Trading Ideas

 

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