Posts tagged “bloggers

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 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):
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