Dan Nathan's Apple Options Trade

Dan Nathan spoke on CNBC's "Options Action" about an options strategy in Apple Inc. AAPL.

He thinks it would be a good idea to set up a risk-reversal strategy. He wants to sell the August 150 put for $2.75 and use the proceeds to buy the August 195 call. If the stock trades below $150 at the August expiration, he is going to have to buy the stock. If Apple rallies more than 11 percent, above $195, at the August expiration the call is going to expire in the money.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: OptionsMarketsMediaCNBCDan NathanOptions Action
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!