Apple: Looking For A Good Entry Point? [View article]
Following with an update: Yesterday, March 26, Apple again touched its 10day moving average at around 597.50. It bounced off and is now making new highs (613.40) repeating the trend since its January earnings date.
Apple: Looking For A Good Entry Point? [View article]
Absolutely, and he yet again did another chart on CNBC when Apple was trading near 600 saying the same thing he reiterated on that outside day. The "fundamental" flaw in his analysis is that the chart covers too long a time frame (many many years). There were years in that chart where Apple made little to no money (sounds shocking, but Apple wasn't too successful before SJ's return). The point is, you can't compare how Apple traded 10 years ago, when it made no money, to how its trading now, when its one of the most profitable companies of our era. The chart's analysis only goes back to the Jan. 25th earnings gap up. Great earnings, great mark up. But even in the amazing ride up, there were pauses and that was the time to get in. The two indicators I mentioned hope to give investors an edge in predicting those pauses.
Apple: Looking For A Good Entry Point? [View article]
Correct, and I wouldn't mind it flagging in that area. The information contained in this article is also integral to those who buy options, especially as a play on earnings. Each day that passes causes a depreciation in value as a result of time decay (theta). If I know Apple could be the same price a week from now, I would obviously purchase the call at that time as opposed to now. Also, a market pull-in might cause Apple to come in more and touch its 20 day. Its basically a wait and see approach. Undoubtedly, one should not buy when the stock price significantly diverges from its 10 day as one can see in the chart.
Why I Wouldn't Trade Apple Right Now [View article]
Apple has recently become a day trading platform. The options players are largely the cause of the recent mark up. If volatility is not something you can handle or navigate through, then either buy and hold because valuation is in your favor. I will point out that whenever Apple has diverged upwards of 5% or more from its 10 day moving average (has occurred in time frames since earnings release), there is a bit of a pause and retreat to the 10 day moving average. Simultaneously, RSI levels have read above 85 right before the minor sell-off. So, look for those two metrics to arrive at a possibly overbought conditions.
Apple Approaching Consensus Price Target [View article]
Well Jeffries and Morgan Stanley just have in the past few trading days to 699 and 720 respectively, so it looks like the separation will be more attributed to the raising of price targets
After Abysmal Earnings, The Time To Short Groupon Is Now [View article]
The stock is down more than 20% since I wrote this article. At that time, shorting via the March puts had a substantial return. The options market is the optimal risk/reward way to short this stock. If you are looking for another entry point to short this stock, it may be wise to wait a short time to late march/early april, which I discuss here - http://seekingalpha.co...
I agree with much you have said. Of particular interest to me is how CAT will react after it fills its earnings gap. Cat continued its lower highs and lower lows today, so the downward trend is still intact.
You are correct and I am long-term bullish on this stock as I have reiterated in stock talks and previous articles discussing CAT. The emphasis of this article is in the short-term, which is important to active momentum traders and/or those who utilize options for hedging purposes. For macro-investors, adding more to this position as it goes lower is not a frowned upon strategy, although I would wait to see how it treats certain support areas.
Proven 41% Return For Caterpillar Option Traders [View article]
I certainly am a CAT bull, have been so since december as you can see in my stock talks. I promoted the CAT feb 95 call in December when it was trading at 2.75. It closed Friday at 19.00 for an incredible 690% return. But after crazy gains like this, I feel its time to lock in some profits and even take advantage of a slight pullback, before it roars on.
Proven 41% Return For Caterpillar Option Traders [View article]
Those strikes are certainly better, but the expiration not so. March or even April are better expiration dates. Time decay (theta) is much greater in the Feb expiration (which is now gone) than in further out months.
Proven 41% Return For Caterpillar Option Traders [View article]
It was 98 cents per put. If you buy one put, you multiply it by 100. Thus, getting the cost of $98. The typo here was "call." Correction was submitted.
Apple: Looking For A Good Entry Point? [View article]
Apple: Looking For A Good Entry Point? [View article]
Apple: Looking For A Good Entry Point? [View article]
Apple: Looking For A Good Entry Point? [View article]
Why I Wouldn't Trade Apple Right Now [View article]
Apple Approaching Consensus Price Target [View article]
After Abysmal Earnings, The Time To Short Groupon Is Now [View article]
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Caterpillar In Correction Mode [View article]
Proven 41% Return For Caterpillar Option Traders [View article]
Proven 41% Return For Caterpillar Option Traders [View article]
Proven 41% Return For Caterpillar Option Traders [View article]
Proven 41% Return For Caterpillar Option Traders [View article]
Has Apple Gone 'Parabolic' Or Just A Bit Overextended? [View article]
Facebook's Gift To Zynga Option Traders [View article]