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Income Masters Trade Alert: AAPL

The protective put we purchased to hedge our position ahead of Apple’s (AAPL) earnings announcement is on track to expire worthless.

AAPL rallied after reporting despite the company delivering disappointing revenue and earnings for its fiscal first quarter. While revenue was down 5% year over year to $117.2 billion, it was up on a constant currency basis, and the company’s services revenue rose 6.4% to $20.77 billion.

Our call, which does not expire for another week, remains deep in the money. If possible, we will roll it up next week to capture additional appreciation.

Note: No action is needed on our AAPL Feb Monthly (2/17) 139 Call at this time.

Current Stock Price: $150.81

Cost Basis: $150.25

Action: Watch the AAPL Feb Week Two (2/10) 140 Put expire worthless

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