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Monday, January 12, 2009

Apple Looking Pretty Tasty

Today the most traded contract was the AAPL JAN 90 CALL. After hours the current bid for Apple is $88.80 which means it is trading up about 14¢. This indicates that traders are expecting to see Apple above 90+ premium (today's low for the contract was $1.27 and close was $1.57) by Friday. That is a pretty risky bet, but considering it is only a 3% move up it is very feasible. I would assume we end the week strong, maybe not as high as we closed Friday 1/7 but I assume we close this Friday higher than we finished today. I really like Apple and I have several bets on their longer term options that they will go higher. Rumor has it that they could be reveiling something new at the Super Bowl this year, but that is just a rumor. The Steve Jobs news rumors/news is keeping this company down. The company won't stop if and when he has to leave! If something severe happens and Apple takes a severe beating over it, I am definitely going to be putting limit orders for AAPL that day. If news struck that Apple was working with Verizon, Sprint etc... I think we could see an easy 20% rally in the stock, the question is if and when that news will come out. I honestly hope they don't resign with AT&T for exclusivity rights. If you want exposure to Apple but think it is still too risky check out QQQQ they have a large position in Apple.


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