AAPL Earnings - Oct 18

AAPL Earnings - Oct 18

Buying QQQ Call options have produced bigger returns than the AAPL options during the last two earnings. AAPL is 14% of the QQQ. I'm leaning towards buying Puts this time around, and probably QQQ puts instead of AAPL puts. The big reason for puts is because of Steve Jobs death.

Will update later on in the week.



EDIT: Just entered this quick trade, buy QQQ Oct14 2011 56.00 put @ $0.5202
http://finance.yahoo.com/q?s=QQQ111014P00056000

 

I don't share with you your bearish bias on AAPL, I have a bullish bias on AAPL.
The death of SJ and the delay of iPhone 5 I think that they had already influenced the stock price.
The company still had an tremendous exit in sales. I think the earnings will be great in AAPL.

 

I agree .... the earnings will be great. But AAPL will still go down.

 

It would be strictly panic selling, and more of a technical gut reaction than anything that would be rational.

For me, there are two reasons I own the stock: 1)Apple makes about and could exceed $30 billion per quarter or $10 billion monthly. 2) Apple only has 5 stores in China.

QQQ puts are likely to get in the money at some point in the next week, but I don't think it'll be because of weakness in Apple.

 

I would watch GOOG as a "tell" on Thur AH before doing anything.

 

I don't think there has ever been a correlation between GOOG and AAPL during earnings.

 

iPHONE 4S= 4(for)S(Steve)...

The death of SJ has no influence at all. Everybody said: WHAT? NO iphone5? And they have never sold so many phones as the 4S in presales EVAH!!

 

Trade still open, down 50%. Expires on Friday. Then onto the AAPL/QQQ earnings play for October 18.


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Thanks for the tip!

Given your track record, the obvious move here is to SELL the 56 put.

Practically a sure thing.

 

Post some links, and I can add further details of the trade you would like more info on.