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...

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.