Been a very interesting day so far. Came into this week trading two names. Calls in $AAPL and puts in $FB. I had weeklies in both and my plan was holding up pretty well. With that said, whatever that big sell off was, happened. I was stopped out of my $AAPL trade and I took profit on $FB when it filled the gap. But something about this sell-off didn't sit right. With an $AAPL event today, these levels seemed too low. Like a gift on Christmas Eve. "Buy me now because after the event, I'll be back where I should be," it said to me. So I grabbed up some weekly 530 calls and sitting tight.
I kinda got the same feeling on $FB as well. It came down and filled the gap a lot faster then it should have. And it bounced just like a stock does when it drops too fast. I managed to get some cheap 54 calls on this name as well. I was only playing $FB short this week because I thought it needed to digest that big up move. Since it did that rather rapidly, I was back in long, testing an earnings run into next week.
How I am playing this: Both names have dropped out of the trading range on the 60 minute chart. I am going to play these long back into the range. I think $AAPL can even break out above if the event goes well. If not, I cover back down to the gap fill...or... if they make it back into range, I stop out on another break below it.
Good luck out there. Panic never made anyone money.