Trade Review: AAPL Bullish Calendar/Double Calendar Spread

Apple logo in front of a building

Today I’m going to walk you through a recent trade on AAPL stock which started as a bullish calendar spread which was then adjusted into a double calendar.

On October 15th, AAPL was trading around 121 and we entered the following trade.

Trade Details: AAPL Bullish Calendar Spread

Sell 7 AAPL November 6th $125 calls @ $3.80
Buy 7 AAPL November 20th $125 calls @ $4.80

Premium: $700 Net Debit

By October 26th, AAPL had dropped to 115 which was approximately the lower breakeven point and the level I had set as my adjustment point.

I added a second calendar at 105 to turn it into a double calendar.

Trade Details: Conversion to Double Calendar

Sell 7 AAPL November 6th $105 puts @ $1.20
Buy 7 AAPL November 20th $105 puts @ $2.09

Premium: $623 Net Debit

Total at Risk: $1323

Before Adjustment

After Adjustment

Fast forward to November 2nd and AAPL was trading at $107.69 and the double calendar was in profit to the tune of $154 or around 12%.

With only a few days until expiry, this was a good place to take profits.

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are ...

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