This week's Apple trading strategies (11/9-11/13)

A place for Apple traders and investors to share their best ideas -- post U.S. election issue.

To get this rolling, here's Jim Cramer rejecting the advice he was given when he joined Goldman Sachs a hundred years ago. Then, he was advised to forget stocks and concentrate on bonds. Now, he says, bonds are the risky assets. It's Apple and the other megacap tech stocks that are the great repositories of wealth.

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

apple trading strategies 11-9

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

See also last week’s trading strategies.

9 Comments

  1. Fred Stein said:
    Ironic. One week ago, three of us talked about this and came to the same conclusion.

    Apple can borrow (sell bonds) at 2% to buy AAPL with a future IRR of nearly 4%, and growing. This virtually eliminates risk:

    1) Apple’s future IRR is likely to grow and stay ahead of prevailing bond rates by about 2X.
    2) Apple buybacks defend its price, almost without limit.

    5
    November 8, 2020
  2. Gregg Thurman said:
    My strategy of buying Weekly, in the money, Call Spreads ($2.50) has yielded five profitable trades and one loser (the loser coming after Apple’s earnings report) since the start of the fiscal year.

    I will be doing it again tomorrow, waiting for what I believe to be the intraday low before buying. I don’t worry about missing the absolute low as at the money Call Spreads are only slight more risky (4 year average results).

    1
    November 8, 2020
  3. Rodney Avilla said:
    If you attempt to buy the 12 pro max, the shipping times are now extending out 2 weeks or longer. I assume a sign of strong demand.

    0
    November 8, 2020
  4. Gregg Thurman said:
    Demand for the iPhone 12 Pro has been much stronger than Apple anticipated. Making matters worse, the company has been hit by supply constraints for some components, such as power chips and lidar components used for depth-sensing imaging functions, Nikkei Asia learned.

    If I’m interpreting these rumors of component shortages correctly, Apple underestimated demand for its higher end iPhones, and current supply (based on under estimated demand) shortages are the result of higher demand, not failures in production capability. Bottom line is I’m seeing these rumors as being a negative media slant on a real situation, and a very good thing for investors.

    0
    November 8, 2020
  5. Gregg Thurman said:
    Asian/Australian Indexes are up nearly 2% at 1:26 Eastern. US markets are up by similar percentages in pre-market. Presidential certainty is calming the markets.

    0
    November 9, 2020
    • Rodney Avilla said:
      I believe it may be more related to new vaccine news.

      0
      November 9, 2020

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