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.
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)
Reg Fees: $0.00
Net Amt: $554.95
Plan to sell at $8-15
- Share on Facebook (Opens in new window)
- Click to share on Twitter (Opens in new window)
- Click to share on Google+ (Opens in new window)
- Click to share on Tumblr (Opens in new window)
- Click to share on Reddit (Opens in new window)
- Click to share on Pinterest (Opens in new window)
- Click to email (Opens in new window)
This entry was posted on April 23, 2008 by Paul Awol. It was filed under trading stock options and was tagged with aapl options, apple april 2008 earnings, bloggers, buzz on apple, option trade, posts.