Paul Meyer Buys Houses

8pts away from DJIA $12,000 mark. Apple Computer Earnings!

Today Apple Computers stated there earnings after the closing bell 4pm EST.  I am off watch and finally got to see the closing amount the market closed at.  I’m not surprised at all that the DJIA dipped really low and shot back up again.  Apple earnings were a surprise to anaylst and prove again their is still a lot of growth expeciallyin AAPL.  I was taught not to go through earnings when I trade, but because I only went through with a small investment I felt all right about it.  I also know that Apple spikes if there is really good news and the market has been very bullish causing this to happen.  I expected AAPL to do better then views because the story on Apple Computers is huge selling more personal and laptop computers with Intel (INTL) chips.  Their iPods are still selling strong and they haven’t even come out with any new ones and going into the Christmas seasons could make Q1 earnings be the biggest ever in 2007 for Apple Computers.  My options were for AAPL JAN 06 80 CALLS @4.00 tomorrow up over $3 after night my options will immediately sellout for $7 creating a 75% profit.  I bought these options 2 weeks ago.  I’ve been expecting the price to go past $80 even to $90 by January.  With these positive earnings keeping its investors attached to the company you can definitely see future stocks splits in the near future.  I rebought my options on the $73 price support dip like I mentioned earlier.  I was definitely right on my thought process.  My account is finally getting to where I want it to be again and I want to get to the point where I can pay off my new car and 2nd mortgage on my rental.  That would be just awesome.

I also sold out today of my Martha Stewart Living Co. (MSO) MAR 07 22.5 CALLS.  With the stock up 4% on know really super positive news just general I felt a definte pull back will be in place by friday and I will rebuy my calls cheapers.  MSO is brings in successful profiting results from its new cash flow streams will definitely bring its price past the $20 mark.  I bought my options for $.40 and sold for $.70 earning a 75% profit.  I bought my MSO options the same time around 3 weeks ago.  I plan if MSO does dip buying back the same calls for $.25-.30

My total sum of money I received from these trades was around + $5,000 and my initial investment to earn it was $2,000 not bad for 2 trades in 1 months time frame, but I could of earned much more if I had more time to make the trades when I wanted to make the trade.   For the majority of my trades I can only trade around noon time and I prefer to trade after 2pm or at the end of the close which I can’t most of the time unless I get a day off and the stock is where I want to buy it at.  I also had chances to sell it and then buy it back.  Again I need the time, which I didn’t.  I basically buy at a price I like and wait for it to sell out where I believe it will go.  So I do create room for error and big price movement or I would see and make a profit much quicker then waiting a couple of weeks.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s