I am recommending a call to sell against the Apple (AAPL) LEAP call we own.
If you were not in the previous AAPL position but wish to enter a LEAP call spread today, you can do so. Just be sure to purchase the LEAP first and note that we will be managing and tracking it as an ongoing position.
If you are new to LEAP call spreads, please watch my LEAP Call Spreads Coaching Session before entering the trade.
I am also recommending a bull put spread on Lululemon Athletica (LULU). The income we generate will reduce our net debit on the position.
However, you can enter today’s spread even if you were not in the previous one. Just be aware that we will be tracking it as an ongoing position.
And if you are new to bull put spreads, please watch my Bull Put Spread Coaching Session before making the trade.
Finally, I am holding off on recommending a new Peloton Interactive (PTON) spread until after the company reports earnings later this week.
AAPL Sept 2022 Call (9/16/22) 120 Call
Current Stock Price: $149.79
Cost Basis: $32.38
Action: Sell to open the AAPL Aug Week Four (8/27) 150 Call for around $1.32
New Cost Basis: $31.06
Current Stock Price: $404.10
Net Debit: $0.79
- Sell to open the LULU Aug Week Four (8/27) 385 Put for around $0.66
- Buy to open the LULU Aug Week Four (8/27) 375 Put for around $0.35
- Set initial credit limit at $0.31
New Net Debit: $0.48