I have a long term put option on Apple, but since I have been watching it closely, I saw that it had been upgraded this morning. The stock seemed to be steady, so I thought it might be good to put on a very short term bullish spread on. I had some cash available from my winning $YELP spread that expired on Friday.
I sold a put spread (which is bullish).
Sold the $135 weekly put for this Friday for 40 cents
Bought the $132 strike weekly put also for this Friday for 9 cents. The underlying stock was trading around $136.20 at the time.
If this works, that is, if $AAPL stays over $135 through close on Friday, I'll pick up the whole 31 cents (that is, $31 per option.) The stock closed at $136.69, and I am already in the black.
It's probably not smart to trade such short duration, I don't really have much chance of picking up much of the implied volatility, but it's a straight directional bet that the stock won't go down, or go down very much in a short time frame.
I'd like to update my position on the trades I made last week. I have two bullish bets on $UVXY, short a $19 call and a $21 call. The $21 looks OK, $UVXY closed at $20.69, that would pay off if it stays here. The $19 is losing at this point, but $UVXY can fall quickly, so I will hang on to it for a few days. Of course, it can also spike, but I have offsetting long calls at higher prices to give me some comfort.