Paul Meyer Buys Houses

what’s up with apple options. up +6, but option -1.50?

Hmmmm….I thought I would be checking out of my option today, but instead of it moving with the price increase it actually fell in price. I do understand options are adjusted in price, but this usually happens on mondays or end of the month. I’m a bit confused of why my option is now not 6-7 dollars at the strike price of $175. I suppose I’ll have to wait for Apple to make a full move to $175 to sell out at a reasonable profit. I’m definitely glad I didn’t go 100% in with my money because all the May options seems adjusted today by the market maker. That bastard. This is the first time the stock goes up and my options go down dramatically (-25%). Now AAPL at $169 (bought around $163) and waiting for Friday’s movement. With MSFT’s unhappy earnings being a major player in the market it might bring down other tech stocks such as AAPL.

I find it funny that all those blog posters on buying apple inc. on a dip never got a chance unless it dips next week. I think since it had a positive day after earnings that it will continually go up in price for a while with less pull backs proving its a major player in computer sales.

As for now I have to wait until I’m in the money to sell out about up 100%. Two stocks I want to play long-term are Southwestern Energy which just went through a 2:1 stocksplit and moving up at $40 and Visa (V) a new financial credit stock which is highly more popular then Mastercard (MA) and trading at $71. If I had a choice of investing all my money it would be divided between these two stocks and not Apple. I like Apple, but the technology market is weird, although people are always going to use their credit cards and with ever increasing cars oil is still needed and natural resources means big profit.

One response

  1. This seems to happen after earnings. I think it’s because the uncertainty regarding the stock is reduced and therefore the option is worth less.

    April 24, 2008 at 11:23 pm

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