Dr. O

Can Apple Stop the Android?

I'd get an iPhone if it were on the Verizon network. I switched to Verizon from Sprint years ago due to the superior coverage.

What limits stock price appreciation for companies like GOOG, AAPL, MSFT, etc, is simply that the company, its revenues, and its profits become too large to grow rapidly.

The so-called law of large numbers. Yahoo finance puts the market cap of AAPL around 180 billion.

As recently as 2003 you could have bought AAPL at a split-adjusted $10 dollars per share. Now its $200.

The risk-reward appears unfavorable.

How Apple's Market Share Will Propel Stock to $500, Part 1

<<(AAPL) this stock will eclipse $500 based on the fundamentals. It's about as far fetched as Bank of America (BAC) to $20 sounded back in March 2009 and oil to $30 sounded back in August 2008.<<

I must apologize first. My stupidest moment on SA was to mock your $20 call on BAC when the stock was $6. Of course the massive market rally lifted many stocks to 100%+ gains. You mentioned at the time that you were playing BAC with at the money LEAPS.

At the moment, AAPL is overbought and the market is pulling back. Any options on AAPL strike you as a good way to play?

Apple Is Crucial: Charts Show Why

Was bumping up against 200 all day. I don't think that resistance will hold for too long tho. Maybe the best story and best stock out there among the big caps. Real growth! I'm long some Dec 220 calls and will add on weakness. Good luck!

Time to Get Conservative? 50 Ideas for a Summer Sell-Off

Nice article on hedging/collecting premium with selling calls. As you mentioned, this seems to work best in a sideways or declining market. A declining market serves up increased call premiums, hence the enhanced return relative to the index/stock. A sideways market allows you to collect premium and make money even while the underlying index/stock does nothing.

As a frequent trader, the first thing I wondered about were costs of commissions and how selling calls with each stock purchase might affect returns.

Wall Street Breakfast: Must-Know News

The dollar is weakening this morning, following strong stock sessions in Asia overnight. Looks like emerging markets, commodity stocks and markets (Brazil, Australia, Canada), should be strong today. Remember: weaker dollar, stronger stocks, stronger commodities.

Tech May Be a Wreck, But This Isn't 2001

Nice number crunching. However, how much will sales and earnings decline next year? No one knows just yet. How much hardware and software will Lehman Brothers be ordering? Bear Sterns? Fannie Mae? GM? The unemployed millions?