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Apple Inc. Message Board

  • yossefzaoui Feb 28, 2013 6:41 AM Flag

    what to do with apple shares

    i bought a position of 200 shares in the 525 range, i thought that it had bottomed already then, now unfortunately aapl is trading below 450. I don't know what to do next, add to my position at these prices to lower my average, hold or just sell with losses

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    • S E L L
      Then sell short

    • Hi,
      from a fundamental point of view, AAPL looks cheap,
      from a psycholigical point of view, that the problem : because people know. its cheap, they dont give up and so we wait and wait for capitulation, and as far as I saw in the last decades, a capitulation is always needed for a healthy going-up again.
      but ther would be other possibilities too :
      you could sell covered calls, 1 ( 100 AAPL ) for 500 and 1 ( 100 AAPL ) for 550, so you would get out without loss on the stock and have earned the premium and if they expire useless, the premium would have reduced your 525-buying price and you could sell covered calls again.
      And you also could sell puts ( as much as you want to put on risk ) f.e. for a striking price of 400. So if it goes down to 400 you would have to take the AAPLs for 400, but have also earned the premium and would be happy, not having bought at 450 ( but this is only a solution, if you believ in AAPL long side over time and if you have enough money to risk in speculative business in general )
      If you simply want to buy or sell and not consider options, I would buy or sell just half or a quarter of what you are willing to buy or sell and buy or sell the next fraction at the next price ( like 425 or 475 ).
      f.e. if it goes up from now ( which I do not think ) you could sell 25 at 450, 25 at 475, 25 at 500 a.s.o. ant at the end of the selling period, you still have a win.
      Similar, when it goes down and down, because when noone believes it any more, it will rise again and than you can fractionally sell you lower bought positions.
      Its a desperate situation being caught in a position with a loss, and if a position goes into the wrong way, you should take the loss fast ( which can also be wrong, if it just turns around the next moment, but if you are caught and do want to fight it out, you will need a lot of time to get the problems solved. But with AAPL, i think it could make sense, as everything around the company now is so negative. Even owning to much money now is a problem - I wish, I could have that one .....
      Just my 2 cents and dont take anything from the above as an advice, just my thoughts about your question - if I would be right, I just could follow my ideas and be the richest man soon, but I am not ....

    • Sell and go short. It will hit $300 by year end.

      Watch and Learn

    • And you come on this board to get advice? When many change id's every day or two, get 2-3 fuind managers or analyst see what they have been saying for the last 5 years - bankers and huge funds determine the direction.

    • SELL before it hits $350 soon.

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