This week’s Apple trading strategies (2/3-2/7)

A place for Apple traders and investors to share their best ideas—Wuhan panic edition.

To get things rolling, here are Wedbush’s Daniel Ives and Ed Lee of the New York Times on CNBC Tuesday as Apple’s Q1 2020 results hit the business wires: (YouTube link)

And, just for fun, here’s Jon Fortt raking New Street’s Pierre Ferragu over the coals for getting Apple so wrong: (YouTube link)

Compared with the waves that rocked Apple last week, the Dow looked almost calm.

apple trading strategies 2-3

Disclaimer: Having never owned or traded Apple, I have nothing to add. Don’t blame me if you drain your IRA doing something you read about here.

See also: Last week’s Apple trading strategies

3 Comments

  1. Fred Stein said:
    Trading Strategy: Wait till the market settles. Sell out of the money naked puts at around 1 year out and 10% OOM for about $15 each. Even if the market does not recover in a year, just kick the can down the road one more year.

    Apple’s buybacks eventually pull the stock up.

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    February 2, 2020
  2. Gregg Thurman said:
    Ordinarily I’d be looking to open ITM Call Spreads at or near tomorrow’s intraday low. Until Thursday’s Close I was on my way to another successful weekly trade. It doesn’t matter why my trade failed (although I did finish the month up about 11%), it did.

    I’m going to sit out this week and watch how the scare mongers (ABC, NBC, CBS, CNBC, FOX, et al) continue reporting on coronavirus. I say scare mongers because at 5X the death rate of garden variety flu coronavirus will kill about 3 in 10,000 over the course of the next year. The medical community says the death rate of coronavirus is only 2X that of garden variety flu. You stand a higher probability of dying in an auto accident, and certainly there will be a vaccine well before the end of this year.

    I think Apple has given away what it’s best research says will be the duration of this flu cycle when it stated its China based Stores are scheduled to reopen this coming Friday.

    Come next Monday I’m expecting a bounce in the markets as life will appear to be returning to normal. If it does I’ll resume my strategy at that time (keeping a wary eye out).

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    February 2, 2020
  3. David Drinkwater said:
    I’m curious, but momentarily too lazy to see what the history of AAPL prices are on the Friday before and after earnings. I would be willing to bet that there is a strong history of “selling the news”. The only reason I don’t care much is that I am a buy and hold investor.

    0
    February 2, 2020

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