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AAPL Bull Call Spread finished with 236% gain!

I do not see a gain in hundreds percent level too often. Many of my trades usually end up between 6% to 50% range. This time a scored a big win with my Apple (AAPL) bull call spread I opened at the beginning of December 2014.

Apple is a company which is making money. It is a money cow, money making machine. Yet you see many investors trashing this company ignoring reality. I spot a great opportunity taking a debit spread against AAPL in December and decided to take it.

But it wasn’t an easy ride whatsoever. At some point, this trade looked like a disaster (most of January) when investors and traders were selling the stock. And at some point, I was even doubting my thinking about this stock. Many times I had to repeat myself to stay calm and give the stock (company) time to prove itself.

So I decided to act and opened a bull call spread trade:

STO 1 AAPL February 20 2015 130 Call
BTO 1 AAPL February 20 2015 125 Call

@ 2.23 LIMIT DEBIT

The stock was moving up fast and strong and I expected it moving even higher. But then the stock stalled and a sell off started. That was when my fear of getting in a trade at a very top came in and pressed me until the company announced its incredible earnings. Actually I found what AAPL may report on the internet earlier than that as someone was writing that they would report around 70 billion dollars earnings for the fourth quarter only (which is the same amount as the entire 2013 year).

After that the stock started recovering and my only concern was whether I gave the stock enough time or not to show its power.

AAPL

I paid $223 for this spread and my potential gain was $770.00 (334.78%). But since expiration for this trade was approaching fast (this Friday) and I am not sure whether the stock will be able to get to those highs I decided to close the tyrade earlier and take $526 profit (236%) instead.

I still have yet another AAPL trade expiring next week (119/125 bull call spread) which is in good shape too and is about to make another $371 as of this writing.

 





4 responses to “AAPL Bull Call Spread finished with 236% gain!”

  1. Dennis says:

    Martin…

    There’s only one thing to say — “Congratulations!”

    Keep up the good work.

    Respectfully,

    Dennis McCain

    • Martin says:

      Dennis, Thanks a lot. It is quite pleasing to see such return after some serious losses I had last year. Hopefully, I can continue having such income in the future. It would be nice.

  2. Congrats on the massive gains! Way to go!!

    R2R

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