Sunday, October 10, 2010

Option Mondays: AAPL again....

Another Option Monday and I am sticking with what has been working. Last week I purchased 5 AAPL Nov 270 Calls at $24.45 per and 5 AAPL Nov 280 Calls at $17.25 per. To date the trade has been fairly profitable (I’m up nearly $4,000) and I think it has considerable more room to run. Every day we are greeted with more good news- Target, Wal-Mart, Verizon, China Telecom, Apple TV, etc. Every day we get more and more analysts upgrades- the new median target price is $352, everyone is expecting a blowout quarter. This seems like easy money. That is what is starting to worry me.
AAPL reports earnings on the 18th and anything less than a blowout quarter will cause a profit taking selloff. To be clear, I think AAPL is going to post a blowout quarter. This is a company that is firing on all cylinders. The China roll out went better than expected. This could be its 20 Billion dollar quarter and for the sake of my call options, it better be.

So my plan for the week is to sit on these options. I will take a profit if AAPL hits $305 before earnings- that is very feasible. There could be a lot of managers playing catch up come Monday. Other than that I intend on holding these past earnings and adding to my holdings on any weakness. The fundamentals are there, the momentum is there, the technicals are there, let’s hope the market agrees with me.
Wish me luck.


  1. Craig, last week I had the best trading run ever - $22k in 3 days with weekly options. Not sure if I will jump in again this week. Good luck again!

    - Cobe
    (cobe98 at yaho com)

  2. I agree - think will be biggest up surprise ever for AAPL - will hit 350 but may not be till mid 2011 - a lot already factored in. . .

  3. Oh and by the way- this trade is 70% of my portfolio. I think it is the best bet in the market.

  4. congrat Graig -- glad you hung in. I'm still in until Monday, then will sell half hold half until after the report to see what happens (Jan11/300s) unless things get weak -- up 100+%. This is a rare opportunity to make money in an unpredictable market

  5. Thanks to aapl I had a great week. I help my oct 300 calls until 3:30 friday experation day. Sold them and jumped right into the weekly 310 call at the same price (10.60). Thanks to aapl my account is up 318% on friday and 2000% in 12 trading days. I hope they dont let me down, Im going to try to hold out until wednesday. Lets go appl!