techy

Apple Credit Spreads: Targeting 500% Return

forgot to mention, that Jan 2010 strike 90 puts was $12/share....or 1200 each contract.

in this bear market...expecting on a big upside is not as fruitful as betting that this quality stock will not go another 40% down. and since i am selling premium, i earn money with each passing day.

but with government hands on intervention, my gut tells me that maybe we will start recovery in credit market....leading to recovery in mortgage/housing....le... to stock market rally.....and business expansion.

we will know for sure next week.

Apple Credit Spreads: Targeting 500% Return

i sold Jan 2010 strike 90 puts for $12.

which means i am protected from loss all the way till apple drops to 78, at which point i can choose to go long apple.

i hedged that position by buying one strike 80, Jan 2009 puts, for around $100 (yes its expensive, but if apple tanks below $90 due to high volatility, i can sell this put and wait for recovery).

my margin requirement for above position is only $2000.

and i dont have pray for apple to go up a lot...

Appetite for Risk? Buy Some RIMM

poohead..

i think you need to check your numbers..

BB dont cost that much per user....recently we switched from BB to a motorla Q something using activeSync....and the reason was not cost, but better sync without having to hookup to laptop.

plus IT can manage the service on their own, no need to deal with Blackberry support.


so the author thinks that people will buy new bold....just because it came out, i am not sure its that simple....businesses dont spend on new handset unless its past the 2 year period and they are entitled for some discount.

plus there are hundreds of competition to BB these days using ActiveSync....

i think RIMM is going to do ok for another 2 quarters and after that all bets are off ( i will start a small short position if it crossed 145, and will keep adding as it goes up, the momentum may carry it all the way to 160 or higher....but that will be heaven for top sellers)

Replacing P/E in Valuing Apple Stock

if apple does not come out with another blockbuster product similar to iPhone they are fair priced....why??

its a bear market p/es are contracting. and apple momentum will start to fade in 2009, and they may not have the same explosive growth they had in the last 2-3 years.

when a company does not grow very fast....it gets value priced.

i think msft and intc may be some examples....their earnings have grown but their share price has shrunk.

Five Great Quality Companies: Are They Too Expensive?

Anal-lists estimates:

i remember seeing $150 price targets for VMware.....i hope they revised it down to $75.

and i am sure there were such expectations even from Sbux and Crox.

i think most anal-ist are only in the game to pump or dump....they want to make money for their employer..

A Rare Buying Opportunity in the Tech Sector

what if the whole market is headed south, due to loss of risk appetite?

do you still think, multiples>25 will be sustainable?

what if the recession story is true, do you still think google and apple revenues will grow?

this is a bullish article which is not taking into account the macroeconomic and market conditions.