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Mobile app stores will generate $25B in revenue this year and 35% of this total ($8.8B) will...
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Thursday, March 14, 6:33 PM ETMobile app stores will generate $25B in revenue this year and 35% of this total ($8.8B) will involve tablet apps, predicts ABI. iOS (AAPL), whose monetization edge over Android (GOOG) is well-documented, is expected to account for 65% of sales - assuming a 30% cut, that translates into $4.88B in revenue for Apple. Android is seen accounting for 27% of revenue ($2B for Google), and all other platforms 8%. ABI predicts iOS will make up 33% of smartphone downloads and 75% of tablet downloads, and Android 58% and 17%.
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This news story has 16 comments:
Everyone is throwing darts at AAPL, but they will over time have to admit that it is one of the greatest companies of our era.
With this government, that amount of time, gets shorter and shorter
How will you protect yourself from very positive overnight news on appl. A stock split, an acquisition or news of very positive sales would send the stock soaring wiping out your profits. You'll either have to buy back the calls to cover at a much higher price or they'll call the stock you don't own forcing you to buy it on the open market. I would prefer to sell the puts when aapl is this low. worst case you'd get Assigned aapl at a very low cost and at least you could hold it on margin and wAit for a profitable bounce.
I find writing credit spreads, using calls $20 above current price and Puts $20 below current price to be an effective way to make 8-10% return on risk weekly. This minimizes the risk if the market moves the wrong way on you overnight. The actual risk is limited to the difference between the strike prices less the credit.
Example, using the current stock price of $441.00, I would sell the Mar 22 weekly Put options at the 420 strike and buy the 415 puts for a .46 credit. On 10 contracts the Max gain = $460, Max loss = $4,540, Return on Risk = 10.13%
On the Call side, I would sell the Mar 22 460 strike and buy the 465 strike for a net credit of.49. On 10 contracts the max gain = $490, the Max loss = $4,510, Return on Risk = 10.86%
This strategy controls the risk and being on both sides of the current price with the Call and the Puts, at least one of the trades will be successful and most often they are both successful. You can also close one of the positions if the stock is approaching the strike price for either position.
Your margin requirements are also reduced to the difference between the strike prices less the credit for each position.
I have been using this strategy successfully for the past year. Let me know what you think.
Try a test trade and watch the results using the weekly options. Since the shares are currently advancing on speculation of something happening with an increased dividend and share buyback, I am focusing on the puts and not trading the calls at this time. I would sell the Mar 28 445 puts and buy the 440 puts for a net credit of .37, so for 10 contracts that would be a $370 gain for five days. That's an 8% return on risk for five days.
Lrt mr know if you need more info.