I guess I finally arrived at the dubious title of "bag Holder" I went quite long at 529. I would like some real opinions on what you think one should do.. I'm sure I'm not the only one so lucky.
You will be getting the $3.05 AAPL dividend soon.
Sit tight...China Mobile should happen...now analysts are talking about this as well.
This will print $600 when that happens.
If you get uncomfortable you can always sell covered calls for anywhere $30 to $65 a share to put a tax deferred, cash in your pocket.
Ride it out. You believed it was a great investment at 529 and planned to hold on for a while...maybe you can handle the risk by selling part of your position and buying back after the stock falls a bit. With respect to writing call contracts you'll make pocket change. Less than 5%. Say out of the money $2,500 for $516,000 of equity. Today I was evaluating selling contracts and didn't like the risk of exercises, even though the relative strength turned hard south.
First of all NEVER invest with money you are going to need in the next five years. Second If you are cool with the money then RELAX by the end of 2018 (with just 100 shares) you'll have received at LEAST $ 6000 in dividends and the stock will be worth twice what you paid for it.
I have to be honest - I've been long for a while but this was supposed to be a solid blow-out qtr and when margins were soft I decided to close my long position - 1275 shares. I made double digit profits but cook should never have raised guidance - we could have seen a huge price movement if he left the guidance alone. Jobs never would have raised guidanceIMO. Cook is not playing the game right. So for now I'm on the sidelines looking for a reason to reinvest- sorry longs but I was not impressed with what happened yesterday and I was a big advocate of the stock and still love Apple products. I need more time to review before I jump in again.
stock went up $ 40 into earnings since the raised guidance. That probably wouldn't have happened without it. As far as a "surprise pop" All the other WS issues still apply and it would have gone back down. What would have been cool is to have raised guidance to a BEAT (instead of high end of projections) and then released earnings on a Friday after close.
Cook is hesitating lowering ASPs in the face of competition because it would contribute to gross margin compression. It's interesting that the lower end phones are going to be sold in China. Apple's earnings potential is mature. You can jump in and out of this stock, but it's looking more and more like a dividend play.
You are only down 2% so unless you are dealing with short term options you should be in good shape... Apple moves quite fast in both directions. . In hind sight, a test of the 515 range was obvious given it's importance on the long term chart. Given all the upgrades, i didn't think it would happen and bought more in the 530 range. But apple always tests major support areas multiple times before a major move.
All I can say is daily chart not looking good. Aapl is one of the most difficult stocks to trade. Could trade into 490's area. Also has had a big run up into earnings. My guess is more downside left to go. Becareful...glta
You never know it may climb back to 530 by weekend when new Ipad and 50 more countries come to play ...however the trend seems downward specially if the whole market retraces. What you could do is to sell December 530 2013 call for $14 . if the stock goes to 530 you will be called but you will have a profit of $14.
But if it goes down say to 490- 500 you can buy back that call cheap.
I personally feel this will DEFINITELY go up again to 550-575 range before the end of this year. so hang on and in the meanwhile think about selling weekly or preferably monthly call against the stock. But don's wait too long...if you sell it when it is 500 then you will loose money.