The downward pressure continues on Apple Stock and I have a number of emails from investors who are holding the May 6 expiry $95 and $93 put strikes that expire today. I noted as well that a couple of members have posted to the members forum on this trade.
When a trade fails I hate taking a loss. Even taking small losses repeatedly will slow the growth of a portfolio. The aim of investing is to keep profits pouring into a portfolio. To that end, understanding various rescue strategies and having them at the ready will assist in turning losses into profits.
Here are some ideas for handling the present downturn and rescuing these in the money put options trades.
Apple Stock Chart – Back to 2014
The drop of the stock today to below $92, marks major break for the stock technically and sets a new 52 week low. The low is now at levels where the stock was in summer 2014. $92 and $90 are major support levels for the stock.
Apple Stock Momentum
You can also see that momentum to the downside, (negative momentum) is at the strongest level in more than 3 years. Investors are bailing on the stock which may end up being a mistake. No one can judge with certainty where the stock is heading but looking at this chart, we have to wonder whether this is the start of a new leg down for Apple Stock, or the start of what may end up being a decent entry point.
Apple Stock 3 Year Chart to May 6 2016
Whether Apple Stock will hold the technical support levels is often immaterial for investors when a trade fails. This article looks at a number of repair or rescue strategies that can be applied to those investors that are short put positions on the stock that are about to expire resulting in the assignment of shares in Apple Stock………..The remainder of this rescue strategy article on Apple Stock is for FullyInformed Members.
Apple Stock (AAPL) Rescue or Repair Strategies
FullyInformed Members can read this Apple Stock repair or rescue strategy discussion directly through this link or they can sign in to the full members site here. Non-members can join here or discover the benefits of a membership.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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