To: zax who wrote (24604 ) 1/9/2013 2:20:06 PM From: Trader J 3 Recommendations Respond to Your missing the point Zax. Apple is already one of those stocks for many. Not likely to be from here ... at least not for me. I'm not in Apple for that right now. My cost basis for Apple is in the $70s. But that pales in comparison the calls that I've traded to take advantage starting when Apple neared $300. At the end of January last year, Apple $500 April Calls could be had for $3. By the time April rolled around they were trading in excess of $100. I normally trade closer to the money to capitalize on over sold and over bought conditions, but I am not against taking low cost leaps (like those $800s) just in case it runs. The risk/reward on those is usually very good. When Apple broke down to $507 intraday not long ago, I took ATM (at the money call positions) for April 13. But Apple ran to $590 VERY quickly .... and when that broke down, I sold out in the $570s. Not every trade is profitable, those $800s weren't ... but they are lower cost and you cut and wait. As i"m doing now. So that's my strategy with Apple and trading.
