No deal is good. The other two telecoms have lifted AAPL's presence in China four fold. AAPL is negotiating from strength; CM is not.
AAPL is having its' best quarter in its' history.
These negative posts are all smoke and mirrors.
Here is my interpretation. Big banks will try to keep it at $550 or below. But nonone can time this stock.
The rally can start anytime.
AAPL is having the best quarter in its' history.
That option play that I proposed as my DEC 17th play must be closed out no later than second week in Jan or the Jan 2014 calls rotated into Feb 2014 calls.
The trick in playing options is knowing when to maximize time premium value.
A week ago, I posted that option trade: sale of 1600 Jan $560 calls for $65 and purchase of 1600 Jan 2014 $560 calls for $18. This put $47 a share in one's pocket.
$47 X 160,000 = you do the math.
Come Jan 2014 , one can rotate out of Jan into Feb calls or close out both.
I recommended this as the " DEC 17th play" because I wanted to put holiday money in everyone's pocket.
On the 18th, the spread stayed at $46.
But one could have closed out the sale of the Jan 2015 calls for a $9 profit then sold the Jan 2015 $550 calls for $65... This would had put a total of $74 in your pocket before deducting the cost of the Jan 2014 calls.
Two takeaways here
1. Never use your own money buying calls
2. You can make lemonade out of lemons. Thus illustrates how.
Another way at looking this...if the second move was made; it paid for the Jan 2014 callls. More importantly, in Thr money calls lose premium faster.. Ultimately, the spread will narrow quicker thus a bigger profit.
Now, I am signing off
Hold but sell Jan 2014 $50 calla for $5.50; Jan 2015 $50 calls fir $11.
Jan 2015 $47 puts and $55 calls together for $17 $8.50 each.
If stock is taken... Who cares! You made money
Wishing everyone a safe and memorable holiday season.
Who knows! DEC 31st may be my last post here anyway.