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Lord DarkHelmet

09/14/12 10:57 AM

#2687 RE: jetpilot1101 #2686

Good job on the Bull Call Debit Spread. Seems pretty safe at this point.

I had a bull call spread on AAPL earlier in the year at 425-430 going into February earnings. Made ~100% on it at the close.

APPL is a beast again. Reminds me when I tried to guess the price movement momentum early in Feburary with a few Iron Condors and got crushed on both of them because AAPL wouldn't slow down. The bigger problem was that I did adjust/exit quick enough. I learned some valuable lessons those few weeks on these spreads, never to repeat the errors I had made during that time.

I did have a bullish directional butterfly on AAPL open going into the Iphone announcement. I got whipsawed out at my maximum loss before it shot up significantly.

It wasn't a big loss, and not a lot of capital. In Hindsight, I could have given the spread some time to mature, but I hit maximum loss and was trying to maintain discipline. Although it hurt me on my AAPL butterfly this week, in the end, strong discipline to exit these positions at your designated maximum loss, and closing the spread at your target profit is pivotal to maintain a consistent life in the options investing world.