CLOSE: AAPL Dbl Diagonal +12.4%

Because of my protective put (Oct 160) I placed on my AAPL double diagonal last week, I have been able to turn a completely losing trade to a 12.4% winner! This a new concept for me (taught to me by my friend and mentor Mojo at www.insanemoney.com.

What's cool about it is that as you see a stock starting to turn in a direction (while you're in a non-directional trade) you can quickly cut losses and neutralize the trade without exiting for a loss by simply adding either protective puts or calls. As you could see on the graphs in my posts from 9/2 & 9/8, my profit curve on the left side swung upward so as the stock were to tank on me, I lock in profits even if the stock is now outside of my breakeven on my double diagonal.

So this afternoon at 2:15pm EST, the FOMC announced that the Fed rate would not change. The market freaked out anyway and tanked for a short while. This helped me with AAPL as it dragged AAPL down with the market. So I watched it and quickly scaled out of each leg in my trade one at a time. I was able to capture $14,292 of profit just today alone.

I am still learning this method so it may not all be perfect, but i just know that for this trade it worked!