This week’s Apple trading strategies (10/18-10/22)

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…

apple trading strategies 10-17-21

Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to 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.

8 Comments

  1. Gregg Thurman said:
    Last week I sold out of the money OCT 15 Calls against my NOV 19 Calls, creating Calendar Spreads, buying them back as AAPL declined. Between that and time decay I sold Calls 3 times, the first making 41c, the last making 3c for a net 61c made per share controlled.

    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

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    October 17, 2021
  2. Robert Paul Leitao said:
    Tight supplies on new Apple products immediately following launch? Is that a problem? Heck, no! It sounds incredibly familiar and almost refreshing. Thank you, Apple, for returning some corner of the world to a state of normalcy. I’m bullish. The “new normal” reminds me of the “old normal” and I’m grateful. If you want a new Apple Watch, buy it now. In the grand scheme of things, this is certainly not a “problem.” It’s a sign of progress.

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    October 17, 2021
  3. Fred Stein said:
    The gem is at the end of the YouTube. Gruber thinks that the new M-series chip will wow the industry.

    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.

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    October 17, 2021
    • Gregg Thurman said:
      Gruber thinks that the new M-series chip will wow the industry.

      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.

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      October 17, 2021
      • Fred Stein said:
        Yes, Gregg the computer installed base landscape is going to look a lot different…. in ways that we can only imagine.

        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?

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        October 17, 2021
        • Gregg Thurman said:
          Who knows how this will unfold?

          I wouldn’t want to be someone that depended on Wintel to make living.

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          October 17, 2021
          • David Emery said:
            There is -so much- installed base that maintaining Windows software will be an enduring line of work… And if the recent history of COBOL is any indication, in 20 years you’ll be able to make a boatload of money maintaining Visual Basic applications…

            1
            October 17, 2021

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