Entry
This trade was entered using technical analysis. As we can see on the 4hr chart around our entry, Apple was trading in a ‘Bull Flag’ pattern signaling bullish accumulation pre breakout. I bought call options expiring on April 6th with a strike price of $165 at $60 per contract. These contracts had some of the highest open interest (liquidity) of any out of the money call option for April 6th. The delta (change in contract price for each dollar the stock rises) was around $20. Delta can also be used as a measure of probability a contract expires in the money. A delta of $20 would suggest a 20% chance of closing ITM(in the money.) This may seem like a risky contact to purchase but I am just trading these contracts, and this contract fit my risk tolerance. Overall I was able to profit ~81% per contract on this trade.