Lighthouse Point Options Alert and Updates on $AAPL

Here is a recent alerted stock idea from our LightHouse Point Options service:

On July 21st AAPL was testing it’s 50 day Simple Moving Average.  The idea was that AAPL should bounce back to it’s recent swing high and we could make a quick profit on the 148 calls.  We were able to purchase those calls on the 21st for $3.10.

The stock quick ran through the recent swing high so we decided to let it run to see what the 25th would bring.  On the 25th it continued to make news highs but showed a little weakness by not closing on the highs.  Since we had a nice profit, combined with the weakness and the ability t use the power of options…we decided to roll.  We rolled from the 148s to the 155 calls.  We sold the 148s for $5.25 locking in a profit of $2.15 or 69% return on investment (without commissions taken into consideration).

We bought the $155 calls on the roll for $0.50.  With a new high but closing on the middle of the trading session on the 26th, we decided to exit the recent purchase for a small loss.   Sold the 155 calls on the 26th for $0.35 for a $0.15 loss.  This made the total profit on the trade: $2.00.

You can see in the chart the action and you can hear Ron’s explanation from a snip from the initial trade idea webinar.

 

Lighthouse Point Options is a directional trading newsletter designed for the beginning–to–intermediate trader. Even the most successful traders in the world had help and guidance when learning how to trade options. Led by our lead educator and former floor trader Ron Ianieri, this service explores the ins–and–outs of options trading in a live-market environment.

Each week, you will receive:

  • Trade ideasfrom Jon, Pete, and Ron
  • Updates and commentarythroughout the week via email
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  • Unlimited accessto archived newsletters and webinar recordings