Seeking Alpha
  • Ghosts of Kariela
    Any opinions of using $GOOG as an $AAPL hedge? I don't want to use puts and I'm certainly not doing the whole against the box trick thing.
    3/3/13
    Reply (13)
    • hahaha48: not that useful because they both can go up or down at the same time
      3/3/13
    • pollyserial: h48 I think that's the point. Do you mean long AAPL short GOOG? Tough call. I had the thought but looking at futures I'd say it can wait
      3/4/13
    • pollyserial: What I mean, I guess is, I'm not really interested in being long AAPL, yet. Short GOOG...maybe. but not as clear cut as AAPL was
      3/4/13
    • XRTrader: I may be wrong, but I think this is based on the thesis that mega cap tech money rotating out of AAPL has gone into GOOG. Thus, u could
      3/4/13
    • XRTrader: Hedge a short AAPL position by shorting GOOG and hedge a long AAPL position by long GOOG. I don't know if I believe the thesis tho
      3/4/13
    • Ghosts of Kariela: I'm talking about hedging apple long with google long, problem is I think we are due for an overall market puill back and that will not
      3/4/13
    • Ghosts of Kariela: bode well for apple or Google. Maybe I'll go long goog, add to $SH. The reason I want to avoid puts is due to the potential apple
      3/4/13
    • Ghosts of Kariela: returning of cash and the puts arent cheap in any sense what so ever.
      3/4/13
    • Babs61: In my experience, one needs to first establish what it is you want to hedge. You just used the word hedge, so I am not clear...
      3/4/13
    • Babs61: You might want to hedge against general big market moves. Or hedge against big drop in Tech stocks,due to reasons unrelated to $AAPL revenue
      3/4/13
    • Babs61: If you are Long $AAPL, why not just put a stop at a price where you feel your view of the world needs adjusting?!
      3/4/13
    • Babs61: Better, put the stop based on a total market share of $AAPL vs competitors
      3/4/13
    • Babs61: For the latter you might need to form your own calculus of revenue spreads and what they mean :)
      3/4/13