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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Slide Rule who wrote (7165)	1/4/1998 11:45:00 PM
From: Matt Webster	Respond to of 213173

Trading Apple I just wanted to chime in with my two cents on trading Apple. Last week when Apple was trading at 13, it was a very strong buy. It met all the criteria I think are important for both value and timeliness - Value because it was trading close to book value with lots of cash (share buyback, acquisitions) and timeliness of because I expect Jobs to say something significant in the next month. That combined with the January effect and general lack of value in the market made Apple exceptional Now, Apple has gapped up to 16 1/4 on no news in a flurry of buying. There is still possible upside to the 20-23 range, but now the waters are much more dangerous. I would recommend that anyone thinking of seriously investing in Apple buy the protective put one strike out from where they get in. In this time, the April 17.5 or 20 put are the best values. The upside is still there with these in the money points because the "delta" on the options quickly shrinks, while the delta on the underlying issue stays 1. If we get a "mob" rally to 23 or even to 30, like last Fall, you will fully participate, while if for some reason Jobs disappoints, you are fully protected. These are dicey times for technology, as even events outside Apple's control will move the stock. Intel earnings come shortly, as will a slew of information about the sub-$1000 computer's contribution to earnings. As of this moment, foreign markets show no significant strength. Protect yourself. Kindly, Matt