Hey emgall, if I were to wait it out until op ex and AAPL were to stay right here, yes I would lose $1000 which is the difference in the prices of the options. But this trade is not desgined to buy all three positions and wait. The idea of a trade like this is to constantly finesse it by adjusting the put position. I just think that AAPL has a better chance of pulling back between now and the 20th under $70 than it does of moving higher. That's the reason for the put. But, if it appears that I'm wrong, then I just bail on the put and get back some of that $2.85 I spent for it and ride out the covered call position until ex day. I would really like to see a big drop in AAPL to profit on the Put and then take that profit and roll it into some more AAPL shares for the next option period with a new covered call play.
I doubt AAPl is going to stay here because it's been all over the place. I should profit on that put. The reason for the covered call is to 'have my cake and eat it too'.
Some might look at AAPL today and say how dumb this trade was because on the stock alone I am up almost $2k. But who knew? I didn't have to watch it and stress about a pullback. I was covered. So, I end up making 2% in the end? Hey, it's not only a profit, it's a very easy profit that's almost guaranteed with no stress about which way the stock's going to go. Nor do I have to be a stock picker. I just used AAPL because of it's high beta.
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