A place for Apple traders and investors to share their best ideas.
To get things started, here are Citi’s Jim Suva and D.A. Davidson’s Tom Forte talking up Apple Friday morning as the markets headed into into their Omicron swoon:
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.
The risk now in anything other than 1:1 investing outweighs the reward in my opinion, until there’s some visibility. That might be next week if Omicron turns into something health officials can clearly describe how it impacts (or doesn’t) the world’s vaccination policy – and if the current vaccines are even effective against it, or it could be next year.
AAPL is clearly a long term winner but this is no time for cheerleading short term. I don’t expect anyone in CNBC studios (virtually or otherwise) to be looking beyond their own screen, let alone outside of the US, for insight so the BUY MOOOOAAR calls are inevitable, but likely to mislead traders and investors of leveraged products into a false sense of security.
Lockdowns and Omicron (sounds like a new Avenger’s arch-villain) together with geopolitical issues make this a potential perfect Nightmare Before Christmas.
Extreme caution is my advice. Turn off CNBC and read the news feeds from outside of the US for what’s likely to impact US sentiment a week or two later when the country notices it isn’t an island and yet again might have to take the impact of COVID more seriously than it is.
More power to anyone who manages to trade this successfully into new ATHs for December though 🙂
Analysts’ EPS estimates for 2022 and 2023 are far too low. As they revise estimate upwards, the market regains confidence in AAPL.
Timing remains a mystery to me.
I intend to take advantage of these gains, assuming they hold, in an account I manage for a friend (free of charge so as not to violate SEC rules) by selling Calls against DEC 23 $165 Calls purchased @ $2.19 on Friday last.
I’m expecting AAPL to go up about $2.00 sometime during the day and am eyeballing Strikes that may, or may not, expire worthless on Friday DEC 3. Either way I make money for that friend.
The point being missed is that every single day of every single year the world is fraught with risks. How the individual deals with those risks is what matters. Experience tells us that when confronted with a new risk the markets recoil in fear, only to bounce back a day or three later when cooler heads prevail (by taking advantage of the panic driven sellers).
I say bring those risks on, I care naught about the financial well-being of those that can’t handle the heat in the kitchen.