Lions.. AAPL is a buy here.
3 ways to play this.
#1. You can buy just ITM calls which expire out 6 months. This strategy carries the most risk, but also has the highest profit potential. -I WOULD DISCOURAGE YOU FROM UTILIZING THIS STRATEGY! A LOT OF RISK HERE. IF YOU DO CHOOSE TO BUY CALLS, CONSIDER HEDGING THEM USING ONE OF THE TWO STRATEGIES BELOW.
long Strangle
The long options strangle is an unlimited profit, limited risk strategy. This strategy is utilized when the trader/investor believes that the underlying stock will encounter high volatility in the near term. Significant gains are attainable when the underlying asset price makes an especially strong move either upwards or downwards.
To set up a long strangle strategy, the trader/investor will purchase an out-of-the-money call option and an out-of-the-money put option simultaneously, on the same underlying asset with the same expiration date.
Long Straddle
The long straddle options strategy offers unlimited profit, while limiting risk. This strategy is used when the trader/investor believes that the underlying asset will experience considerable volatility in the near term.
A long straddle strategy can be set up as follows. The investor/trader simultaneously purchases a call and put option on the same underlying asset with the same strike price and expiration date.
***AGAIN I DO NOT RECOMMEND BUYING OPTIONS UNLESS YOU ARE EXCEPTIONALLY SKILLED AT DOING SO.
#2. A BETTER STRATEGY IS THIS: Sell WAY OUT OF THE MONEY, 20% OTM, puts which expire out 2 weeks. This strategy carries less risk. You can also play this in other ways. For example, sell puts 25 to 30% OTM which expire out 1 month.
#3. THE BEST STRATEGY IS THIS: The least risky strategy is to set up a credit spread- and there are many ways to do this easily- I explain how to set up credit spreads in my book, *** link below.
I PERSONALLY LIKE TO UTILIZE EITHER SELLING PUTS, OR SETTING UP CREDIT SPREADS TO TRADE- 99% OF THE TIME I AM A NET SELLER OF OPTIONS WHEN I TRADE.
*** I cover each of the above strategies/how to set them up plus MUCH MORE in my book A (NOT) So Random Walk On Wall Street.
GM
Trading involves financial risk.
***AGAIN I DO NOT RECOMMEND BUYING OPTIONS UNLESS YOU ARE EXCEPTIONALLY SKILLED AT DOING SO***-- GM
Yes Greg, THAT is the disclaimer you needed to put up. It is clear and to the point! People were getting REAMED with NO Vaseline because they were dabbling in instruments they didn't understand. Me...I don't screw around with ANY options more complicated than long calls or long puts. Why? Because I understand them and no others.
Uh-oh....I feel a MANIACAL LAUGH coming out...... Eeeeeeeeeeeeeeeeheheheheheheheee! 😹
@oscar, aka shortselleroex, aka shortsellersexwithsheep.....where are you dummy? I miss you.