Leaderboard

I'm looking to add some positive theta to the portfolio. Looking at AAPL, we can see that it is stuck in the 430-470 range in the last few weeks. I don't see any catalyst that will take it much higher or much lower before the next earnings. I'm looking to enter the August/July 450 call calendar, currently trading around 5.50. This is a trade that will do best if there is not much movement between now and July expiry. Since August captures earnings, the options will hold value much better than July as time goes by in the next month. The IV of August options is still pretty low at 28% and it expected to increase as we get closer to earnings. VXAPL which is AAPL volatility index is at 27.30 which is very low compared to historical levels. The time frame for this trade is around 2-4 weeks and the profit target is 20-30%. I'm planning entering in the next few days. We did a similar trade 3 months ago and closed it for 25.7% gain. This time the IV is even lower and it should benefit the trade. P/L chart is attached.