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Erick McKitterick

 
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  • Why 'Fiscal Cliff Math' Is The Reason Apple Lost $50 Billion In Market Cap Last Week [View article]
    My thoughts here was the 3.8% is probably already pretty much baked into the stock price but I agree this is yet another pressure.
    Dec 10 02:53 PM | 1 Like Like |Link to Comment
  • Why 'Fiscal Cliff Math' Is The Reason Apple Lost $50 Billion In Market Cap Last Week [View article]
    That's not what the article said. It said 600K in profits taxed at 15% would mean 90K in capital gains tax. If the same 600K in profits were taxed at 20% then it would be 120K in capital gains tax. If you take the 120K - 90K this leaves you 30K in delta. Both assume a 600K unrealized gain. The 30K delta in a position like this would equate to around $50.00 per share in price movement.
    Dec 10 02:25 PM | 1 Like Like |Link to Comment
  • Why 'Fiscal Cliff Math' Is The Reason Apple Lost $50 Billion In Market Cap Last Week [View article]
    I actually did not need to sell a long time ago as I do not typically hold AAPL long for long periods of time. Just as trades.
    Dec 10 12:45 PM | Likes Like |Link to Comment
  • Apple Was Slapped Down On Friday. Now Profit From A Rebound [View article]
    I targeted January because from a technical standpoint a bullish bet into January could see a run to 650. Unfortunately price action recently actually has me more cautious of late so I'd be careful. Butterfly spreads make money during vol collapse which will continue for Jan as earnings are just after expiration so I'm also playing for a run-up there as well.
    Nov 20 08:16 PM | Likes Like |Link to Comment
  • Investors Don't Understand Apple's Math - A Mistake [View article]
    @User 184044

    That's not how it works. Even if they did a 10 for 1 split the options market would just adapt and have 10x the volume making CBOE more money. It's all about volatility.
    Nov 14 05:07 PM | 2 Likes Like |Link to Comment
  • Apple Was Slapped Down On Friday. Now Profit From A Rebound [View article]
    The home run would be buying the 600-650 call spread now and selling the 650-700 later for a credit if you did believe a big rally was in store.
    Nov 6 01:44 PM | Likes Like |Link to Comment
  • Apple Was Slapped Down On Friday. Now Profit From A Rebound [View article]
    You can adjust this trade by just selling it for a profit or closing one of the short strike calls.

    In terms of assignment you don't run into risk on assignment until there is little to no time value left. IE AAPL would need to be above 700-715 before someone with a 650 call would even consider assigning you. Pretty simply put if there's time value your odds of getting assigned is next to 0.
    Nov 6 08:38 AM | Likes Like |Link to Comment
  • Apple Was Slapped Down On Friday. Now Profit From A Rebound [View article]
    No worries I'm just trading levels. I'm not a huge fan of the stock but I do love AAPL products. I think margin compression and the fact they are going away from their we do 1 thing and do it well mentality is the wrong move. I'm not a fan of iPad mini as I don't think this is their space.
    Nov 6 08:36 AM | Likes Like |Link to Comment
  • Apple Was Slapped Down On Friday. Now Profit From A Rebound [View article]
    The 625-675-725 fly could work as well and actually costs less. Of course it does need to run more but just depends on your targe.
    Nov 6 08:34 AM | Likes Like |Link to Comment
  • 6 Ways To Play Apple's Earnings [View article]
    I'm just not sure an 8% implied move is normal for a 550+ billion market cap stock.
    Apr 22 04:12 PM | Likes Like |Link to Comment
  • Did The Market Know About Apple's Announcement? [View article]
    I highly doubt it seems to happen all the time just follow options for 1 week and you'll see millions made out of thin air.
    Apr 21 09:19 PM | Likes Like |Link to Comment
  • 6 Ways To Play Apple's Earnings [View article]
    The ATM weekly straddle is 45.00 right now which I believe is WAY overpriced.
    Apr 21 07:03 PM | Likes Like |Link to Comment
  • Did The Market Know About Apple's Announcement? [View article]
    Exactly.

    You mean the people who bought the 10K 30 strike Bear Stearns Puts just 30 days before they went under may have known something?

    Enron / Worldcom take your pick they all had large inflows of puts before the collapse.

    What about all the insane put buying in airline stocks before 9/11?

    Options may not tell the story all the time but they sure as hell can help.
    Mar 19 08:27 PM | 1 Like Like |Link to Comment
  • Did The Market Know About Apple's Announcement? [View article]
    The AAPL 560 calls went from .65 to 25.00 and change at the end of the week. Someone bought 1000 of those 560 calls and laid 65K down and made 2.5M+ on the trade in only 5 trading days. Not too shabby.
    Mar 19 08:23 PM | 1 Like Like |Link to Comment
  • What Apple Really Thinks About The iPad Tablet Competition [View article]
    Good luck to you 2.
    Mar 11 06:26 PM | Likes Like |Link to Comment
More on AAPL by Erick McKitterick
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