Gersh's Option trades Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gersh's Option trades

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mark Johnson who wrote (613)	7/24/2007 12:10:06 AM
From: Mark Johnson	Read Replies (1) of 652

One option short I really like right now I AAPL before the earnings announcement. The options are indicating either a significant upside surprise in earnings or most likely a positive outlook for the company. The reality is that AAPL is strong, has strong products and it will continue to remain strong. Regardless, I think the positives are already reflected in the stock. Shares have run from about $70 a share a year ago and recently hit $145 per share. What really looks tempting is shorting the August $195 and $200 calls at around 50 cents a contract. It is possible (maybe the reality is) there may be a $20 to $25 pop to the up side after earnings. If this happens I think the stock will be over extended in the short term and see profit taking. Also, shorting the 115 and 120 calls for 45 cents and 85 cents respectively look decent. In a stock market nothing is guaranteed, but AAPL options, in my (of course) opinion, appear to be free money given the high premiums in the options.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next