Bought AAPL May 175 calls @ 5.45 – high risk earnings trade
Apple Inc. (AAPL) is a stock with a lot of personality. Through earnings it did exactly what it does many times when it gives a low guidance and solid results which is zig-zags up and down. Up 5% then down 5%. All the Apple traders are saying “oh, I’m buying up on the dip!!!”. Is this true? Personally I think Apple might initially fall on thursday morning, but rebound and rebound hard and keep moving up unless the company shows weakness in publicity. I think AAPL buying up a new tech company is great. We definitely need some Steve Job speeches. One blog poster off yahoo.com made a good point, what happened to the iPod and iPhone sales? The reports scream mac computer sales which is extremely positive in a dead computer market, but did the iPods stop selling? Anyway. If AAPL reports good earnings it usually moves up into the upside through into June then with the iPhone 2 annoucement should continue. Yes, are markets are in turmoil right now, but AAPL is selling its products which means people do have money oh and did I mention everyone is getting their refunds back from the IRS. Yes, spending is about to start and the new iPhones timing is great for people that just got back $600-1200 plus their normal refund.
I’m highly confident in this small $500 option trade going through earnings. My goal is to be out Friday. If apple continues to fall I better take my loss ASAP becase then big guys are selling in which they know more then us.
My trade:
4/23/2008 3:51:06 PM (ET):
Symbol:.APVEO
Description: AAPL MAY 175 Call
Stock: AAPL at 162.48
Action: Bought To Open
Quantity: 1 contract(s)
Price: $5.40
Commission: $14.95
Reg Fees: $0.00
Net Amt: $554.95
Plan to sell at $8-15
This entry was posted on April 23, 2008 by Paul. It was filed under trading stock options and was tagged with aapl options, apple april 2008 earnings, bloggers, buzz on apple, option trade, posts.
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I’m looking to buy back AAPL soon. I’m seeing the market going down or consolidating for a few days. AH AAPL was all over the place and in the end not much changed from the regular close.
April 23, 2008 at 10:49 pm
good luck. I was thinking about a similar trade but backed out late today. I may buy tommorow as stock fell after hours. I may go for sep calls to cater for possible iPhone delays and more fed cuts.
Great blog as well. Adding to my reading list.
Andy
April 24, 2008 at 2:05 am
moom,
You’re right. It did move up and down just as I figured it would. Investors/company must be confident since it is positive today after earnings. I don’t think a pullback is happening anytime soon. Maybe a dip or some big moving force in the market. My options though fell! weird huh? I’m 6 pts out of the money and my option is $4. that makes……..actually i guess it makes sense, but doesn’t on a $169 stock my option in my opinion should be trading 6-7 dollars.
April 24, 2008 at 9:05 pm
i dont understand all of this trade and stocks and all the rest of the stuff u talk about in your article…how do i get myself educated..i too would like to invest but wouldnt know where to put my dollar…
May 6, 2008 at 5:24 am
toosweet,
read books. this is how you get educated and of course interaction by getting yourself wet + losing real money (if you dare to)
May 6, 2008 at 3:05 pm
Hi! I was surfing and found your blog post… nice! I love your blog. 🙂 Cheers! Sandra. R.
September 10, 2009 at 1:13 pm