Apple trading strategies (week of 9/21-9-25)

A place for Apple traders and investors to share their best ideas — post Time Flies

To get things rolling, here’s Loup Ventures’ Gene Munster on how Apple gets to a $3.4 trillion market cap…

 

Below: Apple vs. the S&P 500 (normalized)…

Apple trading strategies 9-21

Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to offer trading advice. Don’t blame me if you drain your IRA doing something you read about here.

See also: Last week’s trading strategies.

10 Comments

  1. Gregg Thurman said:
    Bravo Gene. Paraphrased: ‘Only Apple can offer the whole package: hardware, software and services’.

    Further WS is beginning to see Apple’s business fundamentally different from historic view.

    I’m holding off until AAPL hits $100, a target first espoused by Katy Huberty “We will be aggressive buyers at $100”.

    3
    September 20, 2020
    • Tommo_UK said:
      Beat you to it Greg. Nibbled at 103.70 today but I’ll join you at the bar for another round if the sell off continues and we see $100 🙂

      0
      September 21, 2020
  2. David Baraff said:
    I don’t think I understand selling the $130 December put. To be safe, you need to have the capital to buy the stock in case it is below $130 in December (which, considering it’s only briefly been above $130) seems quite possible. Simply regaining $125 by December doesn’t seem an utter certainty to me.

    In exchange, your max profit is only around $3.00 for each $130 you need to secure against needing to exercise the put. Any expiration below $127 and you’re losing money.

    Why did you choose this strategy? What am I not seeing?

    0
    September 20, 2020
    • Gregg Thurman said:
      I don’t know what David sold them for, but the December Chain indicates he got about $2500 per contract. Assuming AAPL recovers to $115 by expiry, David can Buy them back, retaining about $1000 of the original sale price per contract.

      The math is a bit crude, but the principle is good.

      0
      September 20, 2020
      • David Baraff said:
        Indeed. I was mistakenly looking at the price for the call options!! Selling the put yields 10x higher price, now this trade makes sense. A,lot of sense!

        0
        September 20, 2020
  3. Kirk DeBernardi said:
    My take:

    Let’s keep this simple.

    Take PED’s title of this regularly recurring post —

    “Apple TRADING Strategies”

    (One solid oxymoron.)

    Then take the fact that most comments to this blog aspire AAPL to go up — naturally.

    Some prefer to make money as-they-go by pimping their “whore” in the options timing “casino”.

    Some just buy and hold, believing in their choice and its future. Longs, let’s say.

    Which strategy definitely upholds and strengthens a stocks price?

    Maybe the title to this recurring post should be, more appropriately…

    “Apple Investing Strategy”

    2
    September 20, 2020
    • Kirk DeBernardi said:
      Hope I didn’t step on anybody’s money-making toes.

      😉

      0
      September 20, 2020

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