dwaindrb, that's how WS makes money. There is no chance for retail investors to make money in this market. The algos will flush the retail investors in no time.
The way apple is trading right now, it looks like it's going to get clobbered at the end of the day. The stock is absolutely range bound. I really doubt that apple has bottomed yet @ $126. I think we will revisit $122 before we get any meaning jump or potential buyers.
Has anybody noticed that the next week's call premium dropped 15% in last hour? With the same apple price i see that calls fell 15% in an hour. I understand the time decay but it can't be that much in one hour. These options expire next week.
This dip is not a buying opportunity by any means. The stock is stuck due to its large market cap. It will need something significant to cross this major $1T valuation hurdle. Issue # 1 is going to sting the top line earnings. It is given that apple won't be able to beat the next earnings. If that's the case, why not plant your shorts now before others do?
Sentiment: Strong Sell
The sentiment is clearly negative and it's not going to get better any time soon. There are three major issues which will take a big chunk of PPS out.
1) EU is going after all US corporations and AAPL is no exception. No company has won against EU. Apple has already warned of material impact on company's future earnings.
2) Watch has faulty part which is snow ball into something else. This is exactly how the APPL demise started last time. Anybody remember "purple haze."
3) Too much of market cap too fast. AAPL is already 10% of nasdaq and big fishes will not allow apple to influence the entire stock exchange.
This negatives will take some time to go away. If you can hold then it's good, else exit now before it gets NASTY. Apple has already fallen from $35 to $26.
Sentiment: Strong Sell
In that case, short AAPL all you can because everybody knows that MATERIAL IMPACT will hurt the top of the business revenues.
Isn't this amazing? The stock is tightly trading between $130 - $132. All calls and puts around that range are burning exponentially. WS is #$%$ as always.
Who are you going to complain when the Sheriff of the town is the biggest THUG?
I meant "there is MORE downside from here than upside." Anyways, the sliding PPS might open an opportunity to buy in. I am a buyer if it breaches $130 level.
Very funny. Goldman is the one of the very few firms on WS that never talks about equities in public. You are lying through your teeth.
A lot of good news is built into this price. IF aapl reports a stellar qtr, which I think they will, the PPS will shoot up. I think a lot of analyst will look at the financials with the magnifying glass. One issue and we go back to $120 in no time.
Bottom line: there is no downside from here than upside. I wouldn't think twice if we were @ $120.
What do you expect? It went up from $125 to $130 in 3 days. This was supposed to happen. At some point they have to puke and today is the perfect day--Opex.