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Dan Nathan's Apple Trade

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On CNBC's "Options Action", Dan Nathan recommended a stock replacement strategy in Apple Inc. (NASDAQ: AAPL), ahead of the release of the iPhone 8.

See Also: Outlook For Apple's Main Event? AR, 3D And A Swankier Siri Tying It Tightly Together

Instead of owning the stock, Nathan wants to buy the November 160 call, sell two November 170 calls and buy the November 180 call for a total cost of $2.

If the stock closes between $162 and 178$ at the November expiration, the trade is going to make money, and it can achieve a maximal profit of $8, if the stock closes at $170. Below $162 and above $178, the trade is going to make a loss and it can maximally lose $2.

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


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