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Apple Inc. Message Board

  • split_city split_city Jan 12, 2013 1:51 PM Flag

    Call Options Point To A Rally

    The fear mongers who are talking down AAPL don't seem to be gaining much traction in the options market. PUT protection is relatively cheap in the sub 500 category. However, there are a lot of 550 Feb. 13th Call contracts out there. Smart money betting that AAPL goes up from here.

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    • The most calls open interest are at 600. Even with a wonderful earnings report, I just don't see apple running 80 dollars up. There is too much fear in the future, that if earnings came in great it wouldn't matter. The fear is that earnings now, no matter how good, will not translate to high earnings in 2 years. I would imagine a run of 40 to 80 dollars following a great earning report, and on a neutral earning report I would imagine a fall in stock price. The big catalysts are 1) returning cash to share holders, 2) stock split, 3) new product that indicates future revenue.
      Right now if I had money I'd go with selling puts below 480 or 490, because i don't think it will fall too far on making its earnings or even missing its earnings, and then I'd use that money to fuel a bull call spread running from something like 540 to 600.

    • Its nice reading intelligent posts. Thanks!

      Sentiment: Strong Buy

 
AAPL
100.86-0.77(-0.76%)Sep 16 4:15 PMEDT

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