Apple shares have added $60 in two weeks—but one big option trader thinks that the shares have another $100 to go between now and August.
On Tuesday morning, the biggest trade in Apple was the purchase of 200,000 Apple shares and the sale of 2,000 August 565-strike calls for $2.04. This trade created a "covered call" [...]
Latest quarterly results from bellwether Apple Inc. (AAPL) have shown how precariously placed the technology company is at the moment. Once the darling of the markets, many believe that the best days of the iPhone maker are over for all practical purposes. We are now looking at IBM Corp. (IBM)-like prospects from the company, with [...]
A quick blurb about Apple's earnings.
Apple reported earnings last night which beat already lowered expectations. Little surprise. Under-promise over deliver as usual. However, guidance was very poor. That has not stopped the usual Apple groupies from proclaiming that Apple has become a value stock with a growing dividend and share buybacks. This is completely false.
On the surface Apple appears to the layman cheap. Compared to 2013 earnings expectations, Apple trades at a 9 P/E and a...
Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. However, a good or even great earnings report doesn't necessarily translate into a huge pop for a stock.
During earnings season, BullMarket.com publishes a comprehensive 25- to 40-page Earnings Preview report for the week ahead each [...]
Keith Fitz-Gerald writes: With Apple Inc. (Nasdaq: AAPL) off nearly 50% from its $705.07 a share high set last September, many investors want to know if it's a buy.
Not in my book. Here's why:
1. The company has held on to its premium pricing strategy ...
One of the most damaging psychological phenomenons for investors is confirmation bias. In the world of science confirmation bias is most commonly defined as:
"A phenomenon wherein decision makers have been shown to actively seek out and assign more weight to evidence that confirms their hypothesis, and ignore or underweigh evidence that could disconfirm their hypothesis (ScienceDaily)."
The excellent website, Abnormal Returns, recently highlighted how investors have been harmed by the...
I came into today with only a couple of positions remaining. I closed my other April options over the past few weeks, mostly with poor timing. My AAPL bear put spread was a fantastic trade, except I closed it for a loss before the fantastic part worked itself out. I missed out on a nice [...]
Today's negative pre-announcement from Cirrus Logic (CRUS) adds to the cloudy outlook for Apple (AAPL). In many ways, Apple's problems are very company-specific: a function of competitors are finally catching up to it. Apple's smart-phones and tablets no longer have the field to themselves. What this means is that Apple's growth outlook is a lot [...]
Electronic Arts (EA) is set to release the Mac version of its popular game SimCity on Jun 11. The game will be available through retail outlets and Origin (EA’s direct-to-consumer digital download service).
The PC version of the game, released on Mar 5, received tremendous response and registered more than 1.3 million games sales. Though the [...]
T-Mobile USA – the fourth-largest telecom carrier in the U.S. and also a business arm of Germany's Deutsche Telekom AG – reported an improvement in subscriber growth in the ongoing financial quarter.
T-Mobile USA gained 3,000 subscribers in the first quarter of 2013 as compared with a loss of 261,000 subscribers in the prior-year quarter.
Unavailability of [...]
Apple (AAPL) has reportedly received a favorable preliminary ruling from the International Trade Commission (“ITC”) in a patent infringement case against Samsung.
The ITC ruled that Samsung has infringed Apple’s patents on a certain “text-selection feature”. However, the ITC ruled out Apple’s allegation that Samsung violated Apple’s patent for the detection of a device when plugged [...]
The markets are reversing more than 100% of the bounce up yesterday. Yesterday was a bounce day following the biggest drop in the markets in five months. Technically speaking, this market is in trouble. Anytime the up day, sandwiched between two down days is just a retrace bounce, it is not good. In addition, the [...]
Although the major indices have moved steadily higher during the past six months, a few dozen companies have missed the boat.
Of the 1,500 stocks in the S&P 400, 500 and 600, 33 slid more than 30% during the past six months. A 35% slump in Apple (Nasdaq: AAPL) probably qualifies as the biggest plunge that [...]
"Apple computers? Aren't those for artists and graphic-design nerds?" I asked the salesman demonstrating an early version of the Apple Macintosh desktop computer in the early 1990s. "I need a real computer, not something to paint pretty pictures on and design flowers with."
"You will understand one day, friend," he said with a smile.
I ended up [...]
So much for patience. My plan to wait on selling covered calls on UCO didn't last more than a few trading hours. At least I'm glad I waited overnight, because UCO moved more than 1.7% higher this morning from yesterday's close and the call option prices came back to more acceptable levels for my needs. [...]
Every year on March 15 — World Consumer Rights Day — China's state television runs widely watched exposes on companies it alleges are guilty of some seamy practice.
China Central Television, or CCTV, usually does such a good job of ginning up outrage that companies are forced to apologize, and their stocks take a huge tumble. [...]
The New York Times recently published an article on shareholder activists and how they can sometime abuse shareholder democracy for their own short-term gain (see ‘Shareholder Democracy’ Can Mask Abuses).
The article noted a recent conflict between activist/investor David Einhorn and Apple in which Einhorn has requested Apple distribute cash to investors. Marty Lipton criticized Einhorn’s [...]
There are three reasons investors absolutely must have their eye on the world’s booming unmanned aircraft market...
>> Unmanned Aircrafts: The Greatest Opportunity Since 1984
Apple Inc. (NASDAQ:AAPL) is trading at $427.58, -4.14 (-0.96%). This is again happening on a day when the markets are up and the S&P 500 has hit a new multi year high. So what does this mean?
Apple continues to show relative weakness. This tells us if the markets ever drop, Apple will take a beating. [...]
Cetin Hakimoglu writes: After a brief reprieve in late January, Apple is back to affirming Newton's observation that apples do indeed fall. I remember in December 2012 reading about how it was 'tax related' selling or funds booking profits after a larg...
In recent months, Apple's (Nasdaq: AAPL) CEO Tim Cook has repeatedly stressed that the company still has a number of aces up its sleeve. Cook has dropped coy hints that bold new products are in the pipeline, so Apple could still surprise investors with better-than-expected growth.
But even if Cook is right and Apple is on [...]
Yesterday I participated in the AdvisorShares Alpha Call which is their weekly interview with a portfolio manager or two. A big talking point yesterday was on certain behavioral aspects of investing and market action that repeats over and over.
In macro terms this includes things like getting greedy after a large rally or frightened after a large decline. In the micro the recent developments with Apple (AAPL) are a great example. The comments mostly at Seeking Alpha have captured some of...
I've been eyeing puts on AAPL again for the past few days. If I had stuck with my strategy from last year and kept repeating it, I would have made up for my losses. Instead, I backed off and waited for AAPL to settle down. I don't think it has settled yet and so I [...]
Texas Instruments (TXN) or "TI” has launched two new apps: the TI-Nspire App and TI-Nspire CAS App for Apple Inc.’s (AAPL) iPad.
TI is putting together its powerful graphing technology to create apps targeted at math students. The app is also intended to help teachers by increasing interest in on math studies.
Apart from the app, TI [...]
The story of Apple (Nasdaq: AAPL) is an intriguing one. Steve Jobs created a brand as strong as Coke (NYSE: KO) or Nike (NYSE: NKE). That's a statement in itself. Apple's brand loyalty is so strong, a Marco Rubio anti-Apple tweet induced responses of party switching.
>> What Apple (Nasdaq: AAPL) Must Do to Soar Again
David Zeiler writes: Coming less than a year after Google unveiled its Google Glass Web-connected eyeglasses, reports that an Apple "iWatch" is in the works emphatically confirm that the battle is now joined for dominance over the next wave of tech - wearable computing.
According to the reports, Apple Inc. (Nasdaq: AAPL) has 100 people working on an iWatch users would wear on their wrists, but that would have many of the same capabilities as an iPhone.
There really isn't a good reason why I pulled together the below chart showing Apple's (AAPL) stock price and the amount of U.S. public debt outstanding. Curiosity got the better of me and simply wanted to see how the two series stacked up. The graph scale is semi-log in order to graph the percentage movement in each series. Could it be that the explosive growth in entitlement spending has seen some of those dollars find their way into Apple products? With sequestration nearing at the...
Late last week comScore reported data on smartphone market share. Google's (GOOG) market share at December 31, 2012 grew to 53.4% from September 30, 2012 share of 52.5%. Apple's (AAPL) market share also increased to 36.3% versus 34.3% in September. The biggest share loser was Blackberry (BBRY) with its share falling two percentage points to 6.4%.
From The Blog of HORAN Capital Advisors
Source:
Apple Commands 36 Percent of Smartphone OEM Market
comScore
By: Stephanie Flosi, Senior...
For many years, traders have been looking for the next Microsoft (Nasdaq: MSFT) or the next Wal-Mart (NYSE: WMT). They want to find a small company that is about to become a market leader and the dominant force in its field.
Finding winners that are just beginning to define new consumer markets can be tricky. Take [...]
David Einhorn, president of Greenlight Capital, told Bloomberg TV's Erik Schatzker and Stephanie Ruhle on Bloomberg's
"Market Makers" today that:
"several hundred dollars per share would be unlocked if Apple were to follow through on this suggestion…It doesn't put the company at risk. It's not financial leverage in the sense that debt's considered to be."
Einhorn also said:
"The call I had with them yesterday was very friendly, a very good tone of voice. I had a nice...
Activist investors are like modern day pirates. They approach companies that have high-quality assets, hoist a black flag and let the management know that if they aren't accommodating, they will be removed as captains of the ship.
>> Activists Take Aim at Apple (Nasdaq: AAPL): Here’s a Quick Way to Profit
The other day on CNBC Simon Hobbs and Melissa Lee were interviewing a portfolio manager who is a semi-regular on the network about his position in Apple (AAPL). The way I heard it, he started buying the stock for clients in 2003 and continued buying for new clients as they came aboard subsequent to that first purchase.
He said at no point has he sold any shares and so Simon and Melissa tried to pin him down on this point. During this cross examination the PM said some clients had their...
Option trades, like any other market trade, involve a buyer and seller in order to complete the transaction.
The buyer of a call option has the right to buy the underlying security at the strike price before the expiration date. The option seller, or writer, is granting the call buyer that right and must deliver the [...]
There are two sides to every options trade since there is always a buyer and a seller in every market transaction. On options trades, the seller is said to be writing an option, and from the writer's perspective, the options contract can be covered or naked.
Covered calls and covered puts are written if the seller [...]
When looking at stocks, always take note of two things. First, look to see how the market is behaving. Is the market strong or weak? Second, analyze the strength or weakness of any one particular stock. More often than not, you can tell the future stock movement by doing these two simple steps.
Let's take a [...]
A call is an option contract that gives the owner the right, but not the obligation, to buy 100 shares of the underlying stock at a specified price (which is known as the strike price of the call) at any time before a specific time (the expiration date of the call).
Bullish investors would use calls [...]
After falling more than 38% from its high, many investors are now wondering whether Apple (NASDAQ: AAPL) is a buy below $500. From a trading perspective, the answer is "no," and the only reason to think about buying Apple after such a big drop is based on fundamentals.
Fundamental analysts base their buy and sell decisions on earnings, cash [...]
While the S&P 500 and Dow have rallied to five-year highs, the technology sector has lagged, and is currently sitting about 4% below the fall peak. The PowerShares QQQ Trust (Nasdaq: QQQ), an exchange-traded fund (ETF) that tracks the Nasdaq 100, could provide a diversified way for investors to profit while this out-of-favor sector plays [...]
The most epic and motivational U.S. corporate success story may have just ended. Not only is Apple's (Nasdaq: AAPL) share price in the process of being decimated, its fall from grace is likely to adversely affect its major suppliers.
But as you'll see later in this article, one of Apple's major suppliers has been able to [...]
By Guest Author Frank Odell
It was announced earlier in the week that Apple has lost its ranking as the most valuably publically traded company in the world. With the technology giant’s share prices plummeting, Exxon Mobil surged into pole position after a good performance last year. Apple may only be a few billion dollars behind [...]
Stocks were generally higher last week, with the notable exception of Apple (Nasdaq: AAPL). Traders often expect a pullback or a consolidation after a big gain like we've seen in the past few weeks. The big question is whether that will be a reversal or a pause in a strong uptrend.
S&P 500 Moves Up Without [...]
The following are the notes I submitted for today's now canceled CNBC appearance. They usually ask for a writeup of some sort and since I am on their D-list, or lower I try to be thorough.
General Market
The equity market has obviously had an outstanding January so far. In thinking about the next couple of months, there is clearly momentum to the upside, the first quarter had been a good time to own stocks for the last few years and this year is starting out the same way, the Fed still...
I am scheduled to appear on Squawk on the Street on CNBC shortly after 11am EST, 8am PST or 7am Alaska Standard Time. We are due to discuss the market's run to start the year and I believe they are interested in hearing about our sale in Apple a couple of weeks ago. These things are always subject to breaking news but I hope you can check it out. The picture below is from an appearance a few years ago.
I've been bumped, an Alderman somewhere has suffered a gruesome cuticle injury and they...
The action in Apple (AAPL) merits some discussion. As you know by now the earnings report disappointed the street, the stock sold off in shocking fashion after hours on Wednesday and the selling persisted on Thursday closing at $450.50 down 12.35%. It sold down a little more after hours yesterday to $448.20 (the last I looked).
The stock peaked very famously at $705 in September and after yesterday's decline is down 35% from that peak. Apple has been a great hold for many years, it makes...
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