hey everyone. this is kirk, here again atoptionalpha.com. and in this video, we’re going to do a live closing trade here of ourapple calendar spread that we entered into just a couple of days ago. we actually gotinto this trade back on 3/24 for apple. at the time that we’re doing this video, it’s3/29. it’s only been about five days, but the trade has come into a profit zone wherewe want to take the trade off and bank a little
aapl stock live, bit of money. this trade was originally acall calendar spread and we had tried to take advantage of the possible move up in impliedvolatility as the stock went closer and closer to its earnings event date just beyond aprilexpiration. well, at the same time though, we did want to see a move up in the stockand we got a pretty good jump here today in
apple stock. it’s up a little over 2% todaywhich has really given this thing a little bit of room to make some money. with call calendar spreads and all calendarspreads that we entered into, we usually like to take profits at a 25% gain. once we make25% on the cost of the original trade, these two calendars that we got into for apple,we paid 162 for, so a 25% gain would get us out at about 203. and you can see right now,the calendars are trading for 204, 205 right now, real-time, real money, real market. itgets us out with a little bit of profit, $86, small trade obviously, but a nice little closingtrade. we’re going to just right-click on the entire order, go over to closing, andwe’re going to enter the order. we’re
going to try to get 204 which is just $1 abovewhere we want to get out of this trade in. and you can see we placed the order now, soit’s working. i’m not sure how long it will take to fill. it’s trading right atthe market, so we’re trying to get out for a little bit less than actually the marketis trading at right now. this spread is worth about 204 ⽠and we’re looking to get outat 204. this thing should fill pretty quickly. it's about 151 in the afternoon. we’ll pausethis video, come back here as soon as this trade fills. alright, we’re back here with our applecall calendar spread. it's been a couple of minutes, not too long, maybe about 10, 15minutes or so, and the market seems to be
trading now around 203, 202 or so. just forthe sake of getting out of this trade, because we still want to get out of this trade, it’sright near our profit target, we don't have to be stingy within a penny or two, we’rejust going to adjust this trade slowly down to 203. at this point, we've now closed outof the other order, we now have the new order in for 203, again, that’s exactly wherethe market is. my philosophy on adjusting and filling trades is take your time withit, don't force the trade in, put an order in, maybe wait 10, 15 minutes or so, watchwhere the market is trading, see if you can put an order ahead of the market or rightat the new price that it’s trading at. and then again, just wait a little bit and waitfor that entry price to get hit. again, we’ll
pause this video and see if we can get filledon this trade. alright, right i just paused this video, ofcourse it got filled almost immediately within two seconds after i paused the video. now,we are out of the apple call calendar spread at a 203 credit and that basically locks usin at the profit that we had. as always, i hope you guys enjoy these videos. if you haveany comments or questions, please add them right below. and until next time, happy trading!
