A place for Apple traders and investors to share their best ideas — “Unleashed” event week
To get things rolling, here’s Daring Fireball’s John Gruber making what’s become a semi-regular appearance on CNBC Wednesday taking questions about Apple Watch delays, chip supplies and tomorrow’s “Unleashed” event:
Below: Apple vs. the S&P 500 last week, normalized…
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.
Tomorrow I’m going to be looking to repeat last week’s strategy, only this time I’m not selling as far out of the money. I’ll make much more on a single sale (OCT 22 $147 @ ~$0.70). I anticipate those sold Calls to be exercised, causing my NOV 19s to be Called away to satisfy the executed Calls I sold.
Bottom line is no matter which direction AAPL moves post event I will make a profit. My desire is that my NOV 19 contracts are called away, thereby converting my positions to 100% cash.
I’m doing this as I anticipate AAPL starting a slow, and relatively steady appreciation through Christmas week. During this period I will revert to my weekly deep in the money Call Spread strategy. If that doesn’t happen I’ll go back to using Calendar Spreads as I did last week
Chips matter. The long-term upside potential defies prediction. Who would have predicted that Intel’s 4004, built to reduce the cost of 4 function calculators, would ultimately displace mainframes, when cloud computing took hold.
Apple already grows their franchise up, in price and work-load, and down in price, size, and power consumption.
Leading to greater Mac laptops and desktop sales.
This is the early stage of a paradigm shift among full fledged computers. By 2030 the computer installed base landscape is going to look a lot different than it does today.
As Apple and TSMC expand their lead which will include both dramatic advances reducing the compute/memory choke point and Apple SW toolkits, developers will build applications, in AI and other areas.
We’re past two decades of LinTel cloud. We’re approaching the time for another disruption. Who knows how this will unfold?
I wouldn’t want to be someone that depended on Wintel to make living.