Two Earnings Plays After the Bell

I'll get the easy one out of the way first: Apple (AAPL). I'd be an idiot to get out of the day without significantly reducing the risk reversals from yesterday. These are now sitting near $6.50, so whether I was a buyer at $1.05 or up to $1.50, at least half of these should be off the table. I'm not even opposed to closing the puts as a whole. There's enough cushion to close all the puts and half the call spreads and still net $5.70 on half the position while eliminating the short puts. This would eliminate the largest risk of the position, plus it would remove 2.5x the original capital risked outside of the short puts. AAPL is approaching resistance on the charts, so some profit-taking is going to be my approach.

Apple (AAPL) Source: StockCharts.com View Chart » View in New Window »

Amazon (AMZN) is the tougher one. There isn't much value left in the call spread, so I will let it ride as a lottery ticket. I should have stopped out once the stock broke $253 yesterday. That was a mistake on my part....184 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.