Actual Option trades September 2nd, 2014

Today I opened a new $VFC bull call spread by buying VFC Jan 16, 2015 $65 Calls at $2.05 and at the same time selling VFC Jan 16, 2015 $70 Calls at $0.55 for a total cost of $150 per each 100 share contract.

This is a long term position and will be managed and adjusted periodically.

Another more speculative position is in $AAPL, since the market heats up in anticipation for the September 9th, 2014 announcement, and the stock is crawling up, I bought some very short time horizon calls, the Ones expiring a few days after the event, on Sep 12, 2014.

I decided on some currently out of the money calls and bought some AAPL Sep 12th, 2014 $105 and $106 Calls.

In the coming days I will also buy Puts on $AAPL out of the money but pretty close since the short time to expiration will make them cheap. The Price will react violently on and after September 9th and the options will appreciate, at least one of the legs will appreciate enough to compensate for the loss on the other leg.

That’s the theory at least. The worst scenario from my perspective would be if the stock would not move enough on the 9th or the following days and the Calls and Puts will expire worthlessly.

That would turn this into a learning experience, but I’m counting on Apple to make an exciting event which will remind people of Apple and ask their broker to buy some for their account…