Owning Apple Inc options, without taking a position on stock direction, has been a winner over the last three-, two-, and one-year, but only with a deft hand and a proper understanding of the stock volatility. Here is the two-year stock chart:. What we see, above all else, irrespective of stock direction, is that the price tends to move with momentum. This means there are three critical steps to trading options in Apple Inc we need to address. The left side is this strategy done only during earnings , and the right side is done at all times including earnings:.

Owning option premium during earnings has been a net loser, returning But, owning option premium during all-times has been a net winner, with an Here are the results of owning that same iron condor, but this time, always avoiding earnings. As expected given our first test, avoiding earnings takes the option premium owning strategy up to a Now, on to step two:. It turns out that closing a losing iron condor when it hits a certain level has actually helped returns.

That is, a risk mitigation strategy does both: Here is the simple setting in our test:. If the stop loss is hit, close the position, and wait the rest of the month before entering a new iron condor.

Apple Option Strategy that Wins Big if the Stock Simply Doesn’t Collapse

And here are the return differences:. This is step two, and now we will make use of that stock chart from the top of the article, and implement step 3.

We noted that Apple Inc stock does tend to move with momentum. All of a sudden the return nearly doubles, from Our three-step process revealed a Even better, it took less time to figure this out with the right tools than it did to read this article.

Even further, the CMLviz option back-tester is the conduit to finding these results.

To see how to do this for any stock, index or ETF and for any strategy, with just the click of a few buttons, we welcome you to watch this 4-minute demonstration video:. Tap Here to See the Tools at Work.

You should read the Characteristics and Risks of Standardized Options. Trading futures and options involves the risk of loss.

AAPL | Terry's Tips Stock Options Trading Blog

Please consider carefully whether futures or options are appropriate to your financial situation. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment.

Past results are not necessarily indicative of future results.

The risk of loss in trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition. Follow Us On Facebook and Twitter For More Intra-Day Market Updates!

Dont Forget To Subscribe To Our YouTube Channel! Sign up for the free Opening Print newsletter. The information in these Market Commentaries do not constitute a solicitation of the purchase or sale of any futures or options contracts.

Skip to content Premium: Want to advertise on MrTopStep? Monday, April 24, Monday, April 24, Contributor Charts , Commentary , News , Technical Analysis. Gold ends lower after vote soothes French euro exit fears. Event Driven Trading FrenchElection. Webinar Advertisement Live Squawk Latest Closing Print Subscribe to the Opening Print.