Unless you are selling. It would be foolish to think that selling during all this makes any sense. You wouldn't dump a stock with APPL's fundamentals that dropped from $51 to $45 would you? This is not a big deal long term, and will likely recover part way even today.
I used to make these sort of mistakes many times over. Even with AAPL many years ago. Your first loss is your best loss becuase the next waves turn out to be completely devasating. With AAPL you have to seperate fundamentals from the stock performance itself. I too would call this a way overreaction and thing might bounce a few up from the lows today of tomm, or monday. However in the longer term this stock will continue lower. The story is just not there anymore. And remember the market has been good for the past three or 4 months and aapl has way underperformed and has gotten killed. The stock has been going much lower into this earnings report. AMZN for example has a sky high PE. Walstreet loves them and the stock overall has been great. Should they miss earnings big that stock will also get clobbered and could easily drop 50% in a short time. Apple sells a ton of product. The problem is Wall Street expects even more.
Every stock that I owned has rebounded.
Just look at Netflix. Last year, everyone said the company was dead. but now the stock price is at 52week high.
Its all about manipulation. Send the stock price down and then let it shoot up.
I personally feel apple had a strong quarter. unfortunately it will never please analyst.
Apple = Still a strong company.
Re: nohype88. Option players that was long prior to earnings are screwed though. The holders of common shares as far as that goes, holding a stock that cost $510 is much different than holding a stock that's $51 essentially ties up much more capital with 10x the loss with that your anology to the uncertainty of the company with its lowered guidance . Peace
You are correct as to options. As to longs, it is all decimal points. 2,000 shares of a $50 stock is no different than 200 shares of APPL at $51 You have to decide, either way, to book a loss or hold if you are content that the stock rise back above $51 again, say to $57, and in what time frame.