Looking at placing a Bull Put Credit Spread below 160on Apple (AAPL). A May 150/155 for more than .30.
AAPL is peaking out at resistance of 180, MACD and Slow Stochs are still bullish, and there is a support at 160. At .30 the trade will net a 6% gain as long as AAPL does not drop below 160 in the next two weeks. It is a more risking credit spread than what I normally suggest but still worth a look.
To place the trade I would wait a little in the morning and see how the market and this stock plays out. I would be looking for a drop which may increase volatility, which in turn will raise the premium values and the put prices making it easier to gain a little bit more on the credit say around .40. However if the market really decides to make a nose dive then follow the first rule of option playing - do not go against the market.
