So in my two earlier posts I first analyzed and came to a long waited gut conclusion with these weekly faster and bigger moves that the top peaks of a few fat stocks looked like they were ready to sell off. Particularly Apple (AAPL), Google (GOOG), and Priceline (PCLN). I predicted a pop after the quick fall on Monday for all three stocks to having a buying opportunity especially on AAPL Tuesday. On Tuesday and Wednesday the stocks popped up. Then I planned on Thursday into Friday, if I was correct about the possible new downtrend starting to begin, to show after the initial quick trade on Tuesday. Today, all three stocks got hammered except GOOG.
However, with GOOG I find an exception because it hasn’t moved back up as quickly like AAPL and PCLN. GOOG seems like it is a turtle slowly going down a hill whereas AAPL and PCLN are like college frat kids jumping off into deep blue lagoon abysses.
After Wednesday I initially thought GOOG out of the three would have been the best practice trade to follow in and trade on real money, but after two seeing all three continue to fall I’d say it’s safe that all three are in for a short-term stock price correction.
Now on Friday even the MSFT did well in earnings I don’t think it’s going to affect my stocks. All three stocks will likely fall another 10 points into next monday.
Currently here are the 3 practice put options I have in play:
(bought on close of the 16th – the better trade would have been the close on the 18th)
AAPL 555 MAY PUT @ $20.44 / currently at $16.55
GOOG 610 MAY PUT @ $19.40 / currently at $19.50 (still likely the weakest and best put play)
PCLN 655 MAY PUT @ $20.50 / currently at $12.17
And I’m going to add an QQQ NASDAQ index put option due to how heavily these 3 stocks can weight on the QQQ index because it is ALSO at it’s peak high which has been squatting at the price of $65-67.
Buy QQQ 66 MAY PUT @ $1.42 (close of 4/19/12). QQQ’s are slow but likely the least amount risk out of these 3 larger options as seen just by the movement of the options except for Google because it hasn’t moved much only slowly falling. However, if GOOG continues to drift downwards it could have a sudden couple of big falls.
April 19, 2012 | Categories: apple aapl stock, google stock, predictions on stocks, put options, QQQ free report, stock news, tech stocks falling, trades i'd bet my life on, trading aapl options, trading stock options, what to do with $1000, where is the market going?, why is apple's stock falling? | Tags: aapl, falling stocks in april 2012, goog, pcln option strategy | Leave a comment