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New AAPL Trade Ideas: Calendar and Straddle Spreads

New AAPL trade idea: AAPL is up on the announcement that Steve Jobs is immortal. This looks like a good sell the news scenario, so here's a couple ideas.

Sell -1 AAPL 95 Straddle 8.05.

That puts your breakeven around 87 and 103 in a couple of weeks. This play is assuming that the stock will chop around and won't have a clear trend for a while. It's not full-on bearish but I like the play. There is unlimited risk here so you might want to be careful and use proper risk management.

Buy 1 AAPL 90 Put Calendar 3.88
This spread is a little more skewed bearish with a max gain at 90. The breakevens are a little tighter than the straddle but there is limited risk since it is a calendar spread.

I think on a technical level that the gap will fill sometime this week and we shouldn't see a whole lot of conviction. This stock can be volatile so know exactly how much you're willing to lose.

by Steven Place

Steven Place is the founder and head trader at