AAPL Apple: Barrel of Apples

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	David Sachdev
	Washington, DC User since Dec 2009	39
Covers SINA MCP AAPL ARMH AKAM VMW SODA and 11 other stocks - Go to Blog
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Barrel of Apples

I'm a collector of Apple at these levels, with a re-evaluation at the 272 level. If Apple falls below 242, I will re-evaluate this strategy, and probably consider taking a loss based on what would push us below that level.

The long time horizon on this is because now that Apple is the big dog on the NASDAQ, it's wild swings seem to have come down. Also, with the market a bit shakey on the whole - I think people and institutions are selling the AAPL to raise cash as needed since they have a lot of $$$ tied up in it.

This may not be the most aggressive place for your money right now - but when we see the 240s, I use it more as a savings account/sweep for money that I don't have placed elsewhere.

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What People Are Saying...

Mike Barkett said at 8/23/10 4:50 PM Price action was $245.80 -3.84 (-1.5%)

image credit: http://sites.google.com/site/deardiarythisishermes/chapter-1-the-beginning

David Sachdev said at 8/24/10 11:31 AM Price action was $241.62 -4.18 (-1.7%)

Opened up a Sept 240 straddle yesterday, and was a little surprised to see AAPL break below 240. Picked up a AAPL 250 Sept call and plan on selling it today I believe.

Seeing today as a short term buying opportunity but also for cash generation not long term positions. I wonder if we have the Sept downturn/crash that everyone keeps talking about. But with everyone negative, maybe it doesn't happen.

Josh Warner-Burke said at 8/25/10 10:19 AM Price action was $238.33 -1.60 (-0.7%)

I dunno the news cycle is really ominous, housing data and the general outlook on housing. At this point my own predictions from the last 6 months to a year are proving wrong, I figured this summer would 'turn the corner' in housing but it seems very clear that only government stimulus is able to prop it up.

David Sachdev said at 8/25/10 12:44 PM Price action was $238.91 -1.02 (-0.4%)

Yeah - the numbers are of course exaggerated by the end of the housing stimulus. The question is, where is the money going to flow. Just to the bond market to try and stay even because the stock market and the housing market are busted....or is money going to flow to the few companies that are still firing on all cylinders.

Quite frankly, I think we are going to be in a day trader's market for the foreseeable future.

Josh Warner-Burke said at 8/25/10 2:08 PM Price action was $239.38 -0.55 (-0.2%)

Well if you're savvy enough you can always make money, I suppose. But it's rough out there. To the point of where will the money go? Look back to 08-09, lots of great companies got flushed to outrageous valuations. The last few years it seems everything is getting correlated and when fear is rampant, nothing gets spared.

David Sachdev said at 8/25/10 4:44 PM Price action was $242.89 2.96 (+1.2%)

Yeah...I think I'm going to just ride the volatility (either up or down) and may even play the VIX and the VXX a bit. Right now. This week, I have my straddle on APPL that limit's my loses, and is gains only if AAPL keeps its head over 240 for Sept option expirations, and I've got some AAPL 250's that are in the money for me now, and will hopefully increase with this Disney deal and the September iPod event. I'm looking for a double of my money in that this week I hope and then out...want to catch that time premium and avoid any risk. Also on vacation next week, so not sure if I'll be looking at this stuff closely enough given the volatility.