Calvin C.

Options Trader: Friday Outlook

Anyone see the possibility of WM going lower into the 2s territory?

Why I'm Shorting Apple Ahead of Earnings

The Chinese prefer Chinese made products.


On Jul 21 12:32 PM Ben S. wrote:

> Win,
>
> Thanks for your input.
>
> I agree that China and India are HUGE growth markets for Apple and
> the halo effect from the iPod/iPhone will start being seen especially
> in Mac sales in the future. It will be interesting just how much
> Apple includes this is their guidance for Q4.
>
> With regards to the iPhone, I doubt Apple would guide for any iPhone
> revenue coming from China/India in Q4. In the past we have seen
> Apple guide conservative, ESPECIALLY in emerging markets (China,
> India, etc.) and I wouldn't expect them to deviate from that trend
> in such a dramatic fashion. If they do, I agree, it could be an
> upward surprise in guidance which would be a BIG boost for shares.
>
>
>
> When I initiated my short opinion APPL was above 174 and currently
> it is trading below 163 (7% drop) while over that same time the S&P
> is up 1%. I didn't expect this extent of negative movement prior
> to earnings, especially with positive movement in the market, and
> at this point I think sentiment going into earnings is pretty negative.
> If you followed my advice in the short up to this point, I would
> slim down that position to lock in a portion of your gains. I still
> think my projections are good, they just looked better when Apple
> was trading at a higher multiple.

Why I'm Shorting Apple Ahead of Earnings

AAPL price on
July 17th: $174
July 21st: $163
$11 per share profit thus far.
Nice short, let's see how low it dips tomorrow.