Apple Earnings

Discussion in 'Stocks' started by phil21, Jul 17, 2011.

  1. phil21


    I'm sure most traders are excited in anticipation for tuesday's earnings...

    AAPL just broke it's 50 MA and is clearly heading in the 400$ range. We all saw what happened with GOOG on friday.. Can AAPL deliver the same results?

    Strategies? Strangle or just buy calls after the new positive charts?

    Feel free to share your thoughts.
  2. If "we all saw what happened" and we all know Apple is going to have yet another Q of stellar earnings, wouldn't that imply AAPL is already well priced?
  3. phil21


    Yes perhaps but then again they can always surprise plus the stock is up 13 percent year to date so there is still momentum to run up to 400 and stay there for a while like AAPl has done in the past.

    I agree nonetheless that exceptions are very high and they will need to blow past the whisper numbers and also talk about the next generation iPhone. Still likely.
  4. Long OTM weekly call or put is probably the best way to play it without leaving too much money on the table.
  5. phil21


    A small long strangle may work then... just annoying that AAPL keeps going up to earnings today also Pre market. Still need to hedge a little...
  6. Has AAPL priced in the good news already? It just keeps going up everyday.
  7. The cheapest way, and maybe the best way to play AAPL earnings is with the QQQ options, since AAPL makes up 12% of the QQQ. A QQQ 57P / 58C strangle is only $0.78. Should be a tad cheaper tomorrow.

    Buy on Tuesday July 19 just before market closes, and sell on Wednesday July 20.
  8. Assuming this way, you want to do what? Sell the put, buy the call? I would love to see 58 on the Q's, as I went long on the open in TQQQ. Not a fun day but bought a little AAPL at 369.75 and, yes, I do expect a blowout quarter with price changes similar to GOOG.
  9. #10     Jul 18, 2011