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  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    At expiry an option's value should be equal to the stock price minus the strike price. Time value (the value in excess of this, a premium) declines rapidly as the expiry becomes closer in time. Your 2 year LEAPS will have loads of time value that won't start to roll off until 4-6 weeks prior to expiration, then decline rapidly.
    Sep 7, 2012. 02:06 PM | 2 Likes Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    I don't like automatic stops; what if there's a little daytime "flash crash" and you get stopped out when it dips to 650 - then back up to 675 in the matter of a few minutes? These days those things are more and more common, so I would just monitor the position as best possible (easy these days with an iPhone (ha))...
    Sep 7, 2012. 02:03 PM | 2 Likes Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    The more I read this article, the more I like it. Interesting in-the-money call versus upside call strategy, 6 months out... a bit long to wait but seems to be relatively high probability.

    Comments on China Mobile are really valid, with the new product. Who wouldn't want to hear Tim say, at the end on Sep 12, "Oh... and one more thing... we'd like to welcome all the China Mobile subscribers to our family this time around; the iPhone 5 will be waiting for you in stores on September 21 too..." - fantasy maybe, but oh what the stock would do...
    Sep 7, 2012. 12:49 PM | 2 Likes Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    Not sure if you're asking me, but I don't set any stops, upside or downside, on my calls. I hold them to expiration or close to it, as a stock replacement strategy with deep in the money calls (which replicate the stock's price movements closely if they're deep enough in the money). Many people sell calls earlier than expiration to lock in gains, which is fine, and I guess you should have a stock price in mind as a target, and when it's hit, sell your calls. You'll be potentially missing out on gains if the stock continues to rise but but locking in profits early basis a target price you have in mind. If that's 680, then today's the day to sell them. If it's 700, then you could sell today... or depending on how firm your belief is in that 700 price, you would wait. Time to expiration is also important, and will determine just how much of the gain you have (given that you have to pay at least some time premium, however small, to buy the options in the first place).
    Sep 7, 2012. 12:34 PM | 1 Like Like |Link to Comment
  • Why The Current Apple Situation Might Be The Best Investment Opportunity Of The Decade [View article]
    DITM calls are the best way to use options and define your risk. It's really stock replacement if you're getting deep enough to get a delta close to 1 (as, for example, the 600 calls right now are). With a $1 move in the option price for every $1 move (or close to it) in AAPL, you've replicated your share ownership with some price and time constraints that, as a investor-trader, you'd probably want anyway. Time premium can be mitigated by selling a far OTM upside call - it does cap your upside but if it's far enough out, it's not a bad way to reduce that premium. I'm long the Jan 13 600/740 call spread, which I purchased at exactly where AAPL was trading that day minus $600, so no time premium. Yes, if it's at 780 on Jan 13 I'll miss out on $40 of gain (if I don't roll it up beforehand), but that's the way I've limited the risk (the time premium was something like $20-30 over the break even on the stock - hate overpaying!..). I'm on board with DM on the call-purchase only and early sell to take gains in the meantime also, if so inclined.
    Sep 7, 2012. 12:17 PM | 1 Like Like |Link to Comment
  • Amazon (AMZN) announces a new 7" Kindle Fire. It will sell for just $159 (ed: the hardware losses continue), undercutting Google's Nexus 7 and almost certainly the iPad Mini. The new 7" Fire will feature more horsepower and better battery life than the original. Also announced is the Kindle Fire HD, an 8.9" device featuring a 1920x1200 display and Dolby (DLB) audio support; no pricing details yet. Amazon is sticking with TXN as its processor supplier, some were speculating NVDA would be tapped. (live blog) (more[View news story]
    Not sure what you mean. I ripped all my CDs into mp3s through iTunes. They're there with no DRM, and I can play them through any device I own, and even throw them onto a USB and play through devices outside my ownership if I want to. AMZN also forces you to buy through its local "store", so if it's not offered on, say, amazon.de or .fr, .jp, etc. you can't buy it. iTunes has no such restrictions.
    Sep 7, 2012. 10:00 AM | Likes Like |Link to Comment
  • Amazon (AMZN) announces a new 7" Kindle Fire. It will sell for just $159 (ed: the hardware losses continue), undercutting Google's Nexus 7 and almost certainly the iPad Mini. The new 7" Fire will feature more horsepower and better battery life than the original. Also announced is the Kindle Fire HD, an 8.9" device featuring a 1920x1200 display and Dolby (DLB) audio support; no pricing details yet. Amazon is sticking with TXN as its processor supplier, some were speculating NVDA would be tapped. (live blog) (more[View news story]
    Ooh, a new device through which I can buy stuff from Amazon! Great... gotta go get one right now. Wonder what the margins are on it?... um, well... and then I have to figure out how to get my whole iTunes library into it... hmm....
    Sep 6, 2012. 03:02 PM | 1 Like Like |Link to Comment
  • Apple's (AAPL) TV and set-top ambitions remain bogged in a morass of pay-TV industry intransigence, Bloomberg reports. Points of disagreement include Apple's control of the user interface; its ability to sell directly to consumers rather than leasing hardware; and (of course) the striking of new content deals. However, Apple has reportedly compromised some on the content issue, and is said to be "furthest along" in its talks with Time Warner Cable (TWC). (Eddy Cue) (WSJ reports: I, II, III[View news story]
    Design is more than simple shapes. I just spent 30+ seconds trying to identify the correct "souce" on my Samsung flat screen when switching to a USB input. Just finding the tiny button on the 1980s remote was a pain - touched the mute, etc. by accident once or twice. An AAPL TV would ideally allow me to tap on my iPhone, or just say out loud "source - USB" and it's done. And that's just function - what about HD retina display plus interface plus channel packages that only I want, and content on demand? And that nice aluminum-body AAPL design on a 50-inch, hung on the wall... fantasy maybe, but what I'd pay 2k for if I had to.
    Sep 6, 2012. 01:32 PM | 3 Likes Like |Link to Comment
  • Apple: How High Is High? [View article]
    Where is Zaky these days? His earnings forecasts and calls were very good here on SA.
    Sep 5, 2012. 01:51 PM | 1 Like Like |Link to Comment
  • Apple: Samsung Ripped Off The iPhone [View article]
    What's vertical? The stock's had lots of pauses and losses in the last year. I only wish it were indeed vertical; I would have not lost money when it moved against me.

    Same thing? Well... everything "i" has been a new game-changer. There's more coming. Just need some patience.

    For example, I'm not sure that being able to securely pay for gasoline at the station (or goods at Wal-Mart, or coffees at SBUX, etc.) by swiping my phone against an NFC reader (which will come soon, I'm convinced) is "same thing" as the past. It's big in Japan already and the way many people pay for things on a daily basis in convenience stores, SBUX, etc.

    Someday we'll say into an iPhone or iPad, "turn on GolfChannel..." and the TV responds. Or "playback recorded episode of Curb" or "change source to DVD" and so on, instead of hunting around on baffling remotes. Did I even mention "download Season 4 of..." etc. or "start movie at 10:00pm..." etc.
    Sep 5, 2012. 01:32 PM | 4 Likes Like |Link to Comment
  • Apple: Samsung Ripped Off The iPhone [View article]
    Better product, eh. I just came from a cellphone store. Samsung phones are plasticky, low-end, laughable screen resolution cheap imitations. The difference is they're a little bigger and cheaper and for some reason some people want this huge rectangle in their pockets. Not me. Ultimately it's in the profits. Samsung profit margins vs. AAPL's. I'll take that trade any day. It's like AAPL is BMW and Samsung is a little bigger Hyundai (which happens to have BMW lines, face, design, etc. copied but in lousy materials).
    Sep 5, 2012. 01:28 PM | 6 Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    How far out of the money? We've seen AAPL fall 10, 20, sometimes $30 in a day... I'd be hurt badly if I always did that.
    Sep 4, 2012. 11:39 AM | Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    Not significantly. Upside OTM calls deteriorate rapidly close to expiration, so if the stock were lolling about in the 675-680 range, it's likely that the value of the 685 would be small enough to not be significant. It really depends on when, and what the momentum of the stock (and the vol) is saying (as OTM calls are all purely time value, and vol is a big issue there). Plus, if held that long, the potential gain is a full 100%, so if you give up, say, 8-10% of that, you're still making 90% range on your trade.
    Sep 4, 2012. 10:03 AM | Likes Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    I would do that (and have done it) in "quiet" periods for AAPL (say, early to mid-summer) but when there could be a big gap up on some event, or release, or news, you'll be capping your upside - I know as I did it myself and had to grit my teeth as the CNBC crowd was ecstatic (or glaring) at the "parabolic" move in the stock and I was capped out at a certain level. Would certainly not sell any upside OTM calls between now and Feb anyway - too much about to happen.
    Sep 4, 2012. 09:59 AM | 1 Like Like |Link to Comment
  • 2 Strategies For Making Extraordinary Returns With Apple Options [View article]
    DM - don't think he needs margin on the verticals as he buys a lower strike call which in effect "covers" it if he were called away. I also prefer DITM calls which tie up a bit more capital but you have a wider margin for error as you noted. Long Jan 13 600 calls and short Jan 13 740 calls for a very wide call spread, break-even 655 (which was where the stock was trading when I put the trade on - so in effect, no time premium paid, but capping upside gain at 740 - which is fine by me...).
    Sep 4, 2012. 09:57 AM | 1 Like Like |Link to Comment
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