×

Apple Weekly Put Spreads: Great Call, or Greatest?

On last Friday's Options Action, Dan Nathan of Riskreversal.com suggested doing the unthinkable: betting against Apple as the company geared up to release it's iPhone 5.

Apple iPhone 4S
Source: apple.com
Apple iPhone 4S

And while the technorati are decidedly nonplussed with Apple's latest offering, Options Action fans must be positively giddy over Dan's trade.

Specifically, he suggested buying the weekly, 375/365 put spread for $2.50, a trade that is profitable if Apple stock trades between $372.50 and $365 by this Friday's expiration.

At one point today, the trade was deep in the money, with Apple trading as low as $354.24. But a late day rally sent Apple shares well off its lows.

So is Dan staying long the trade?

"I sold it," said Nathan. "Took my money and ran."

So was it simply a great call, or perhaps the greatest ever?

Said Nathan: "No comment."

Watch Options Actionon CNBC Fridays 5:00pm ET, Saturdays at 6a ET and on Sundays at 6a ET

Questions, comments send them to us at: optionsaction@cnbc.com

Latest Video

Tutorials

Host Bio

  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Options Action Traders

From Our Sponsor

Options Action Newsletter:

Sign up to receive exclusive Options Action content. Each month you'll receive an exclusive message from host Melissa Lee and insight directly from one of the members of our Options Action panel. Keep your pulse on the market with the Options Action newsletter.

Please enter a valid email address
To learn more about how we use your information, please read our Privacy Policy.