Aapl - Apple

Discussion in 'Investment Charts' started by longtermbull, Mar 22, 2017.

  1. baudwalk

    baudwalk Senior Investor

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    Well, this morning I tried to sell a put for ~$130-135 but but premiums were miniscule. Finally said the heck with it, stopped wasting my time, and put in a limit order in to buy at $131. If it happens, giddyup. If not, I'll move on.

    Pundits on CNBC and Bloomberg were all over the map. So much noise. I turned the TV off.
     
  2. gowiththeflow

    gowiththeflow Senior Investor

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    Hi @baudwalk

    So by selling a put you think the fall is overdone? Why would you not just buy a call?
     
  3. baudwalk

    baudwalk Senior Investor

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  4. Chartman

    Chartman Senior Investor

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    I have done this a few times in the past along with synthetic spreads, etc. If for example you think Apple is a buy at $120 but the price is $130 then you could sell a $120 put for $10, receive the premium and that will give someone the option to sell you the stock at $120 prior to expiry. I get all that - good way to pick up stock, espcecially where the fall might already have been overdone. If the stock never hits the exericse price then you keep the premium, if it falls below $120 then you buy stock at $120 (really $110 after taking into account premium you received).

    Played correctly stocks and options can work very well in tandem. I like your style my friend :)
     
  5. fireopal

    fireopal Senior Investor

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    this has been giving some nice trades lately!
     
  6. longtermbull

    longtermbull Administrator Staff Member

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    Hi @fireopal

    While I think the worst may be over in the short term - the market was expecting bad news and has now go it - I cant see a massive bounce unless they open their warchest and look to add another leg/business to the group. This would help to hedge the ongoing weakness and saturated position of the iPhone etc which is suffering from reduced popularity.
     
  7. Buyonthedips

    Buyonthedips Senior Investor

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    There is a suggestion that all of the bad news is now in the price and it might be time to buy. What does everyone else think?
     
  8. baudwalk

    baudwalk Senior Investor

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    FWIW I'm not sure one should be in a rush to get back into AAPL. Fibonacci calclations suggests it is below the monthly (January) support S3 level. At best I would, if so inclined to join the fray, nibble at it (perhaps 1/4 at a time). YMMV. Screenshot_20190107-201836_Sheets.jpg
     
  9. Chartman

    Chartman Senior Investor

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    I agree - it might be time to start nibbling away at the stock without showing your hand too early. If the market was to wobble again, and it could with DT around, then Apple and other tech related stocks would get swiped again.
     
  10. gowiththeflow

    gowiththeflow Senior Investor

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    I think we might see some consoldiation in the $150 to $155 area before the next leg of the recovery kicks in - assuming all of the bad news is out in the open and in the price?
     
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