Below are some great ideas about trading Apple by my good friend and chat room member Ketan Shah (twitter: @ketaanhmshah). He sent these notes to me and they were compelling enough to share with the crowd. Some of these thoughts have been heard, seen, written about. I’m not here to just re-hash, rather Ketan has collectively put together his ideas in a nice, concise fashion. Ketan is in our chat room each day showing off his skills, there is NOBODY who has less fear about success than Ketan. He often finds himself on the right side of the trade. Read on below, follow it and you’ll see what I mean. Perhaps you’ll want to take a look in our trading room – where Ketan and many others generate amazing trade ideas each day.
Hey All, this is my very first article on AAPLE (AAPL), I have been trading this stock now almost 5 years and is one of my favorites. Let me admit that I have lost tons of money as well on trading on AAPL till last year.
I have been trading calls on AAPL (weeklies please avoid Minis J) and I have traded BUPS (Bull Put Credit Spreads, credits to Suzie Smith for that).
Lately I have had success trading $AAPL , I bought $AAPL Jan 2014 $470 calls at $23 in first week of Aug and sold some in the Ichan tweet J, again I bought some more of $AAPL $Jan 2014 $470 calls in Sept after the 10% fall after Iphone 5s release and hey I bought at $27 and believe me or not come Monday morning when $AAPL announced 9million phone sales number it rocketed to $500. My $470 Jan 2014 calls were now trading at $44, almost up (62%) yes I sold some into the Rally and I am still holding some of my position. I have to give Credit here to Bob Lang as he kept on repeating in our X-Team options room that $AAPL IPhone numbers will be AMAZING (High), and huh the wall-street analyst were saying 3million avg. and saying $AAPL will go down J.
I have a bullish case for $AAPL and here are few of my personal thoughts :-
1. IPhone 5s/5c have sold like hot cakes in the first 2 days they sold 9million phones. This number is only in 2 days and as far as I remember Samsung did that number in a month or more.
2. IPhone 5s is still selling hot and is available in Stores (only few) I did some calling in some stores in NJ and my friend helped me do that in SF. This means the number of IPhone 5s/5c that will be reported in this Quarter will be higher than 9million.
3. $AAPL is reportedly opening up 100 or more stores in India, that market is still to be tapped in huge number. http://articles.economictimes.
indiatimes.com/2013-10-04/
news/42718151_1_apple-ceo-tim-
cook-blackberry-india-apple-
india This is one of the leading media in India.
4. A thing that everyone is aware $AAPL is a cash rich company. Yes more than $137++ Billion which translates into $150 approx per share and currently AAPL is trading it at 7-x earnings J isn’t that cheap for a company who has amazing products and which are getting sold and are in demand J.
5. Blackberry, HTC, Motorola, etc. have almost given up their high stakes in that segment of the market, who has taken that share obviously $AAPL and Samsung.
6. Carl Icahn a well-known personality billionaire and an proven investor with a great Track record in stocks lately like $HLF, $NFLX (remember he owns it from $55 and right now $330 and he claimed on CNBC that he has not sold a single share). Now Mr. Icahn has a $2 Billion stake in $AAPL yes that sound like 0.4% or so compared to huge $AAPL market share but hey $2 Billion is big for anyone to invest in one single Stock. With Carl’s track record lately he has been buying cheap and the stocks that he has went on with have almost more than doubled. I am not saying $AAPL will go to $900 but hey yes $AAP is cheap.
7. I am not sure if you know Carolyn Boroden known as Fibqueen, her charts were on CNBC check the target (beyond $700) :- http://www.cnbc.com/id/
100963051
8. Bill Miller:- yes another big investor what he fills Markets not cheap but $AAPL buy is a “NO BRAINER” J. Want to hear what he said sure it’s here: – http://www.cnbc.com/id/
101076428
9. Remember what Tim Cook had said in one of his interviews around 3 to 4 months back, we are going to have a very busy Fall season, yes there is a rumored OCT 15th IPad-mini event, then another event in Nov (12th) rumored. I saw a nice advertisement in a movie hall about a new Mac arriving in Fall. Ok so doesn’t that make lots of products coming out so that making another bullish case for $AAPL.
10. Last but not the least China Mobile deal:- well all the logic and things that we all have been hearing tells that China Mobile deal with AAPL is eminent anytime and hey they have 700 million customers. Imagine getting 30% of that share which is very likely possible.
So all in all I feel $AAPL is cheap and with the OCT 22 earnings on the horizon I am sure $AAPL will have some good numbers to report. I have a trade in my mind which I am going to do next week Monday and that is a long term bet that I am making APR 2014 $AAPL $450 calls for $55.10 yes this is in the money call and I am playing this for 2 earnings OCT 2013 and Jan 2014 and I am expecting $AAPL to have a run up to $540 which makes this trade at least worth $90.
Please note that I am already long $AAPL and I am bullish on the stock, Options have a risk associated to it and you have to be very careful while options trading. This is not a recommendation to anyone this is just some of my thoughts on my beloved Stock $AAPL.
We have tons of ideas in our Options room that a veteran Options trader like Bob Lang, Suzie Smith and David Attardi run and help us all. I have been member of X-Team for a long time now and can’t thank any less to Bob Lang (I am sure you have seen him numerous times on CNBC Mad Money off the charts).