Hmm, What Is Apple Doing?

hanera · October 6, 2018, 4:35am

Short put is a bullish bet

Jil · October 6, 2018, 4:37am

Is it selling put? I do not understand.

hanera · October 6, 2018, 4:40am

Short means sell.
Short put means sell put.
Sell put is ridiculously safe😀

hanera · October 7, 2018, 2:26am

One more thing, we normally short puts when IV is very high e.g. last Friday sudden big drop.

The psychology of shorting put instead of long underlying is you are bullish but not sure whether AAPL has bottomed and feel it might drop to $180. Otherwise you should long underlying immediately.

Frankly the chance of AAPL trading below $220 by Jun 2019 is not high, hence I would be willing to short put (Jun 21 2019 $220) for $16, yielding 10.5% p.a. return if AAPL is trading higher than $220 or assigned at $204 which I feel is very good price.

BA_lurker · October 7, 2018, 3:28am

If you do a short put and the stock goes up a lot, can you close the position to lock in the gain?

hanera · October 7, 2018, 3:35am

Obviously.
Frankly short put is ultra conservative and hence have pretty low return.
Is really a bad choice if the stock rallies very fast.

hanera · October 10, 2018, 7:56pm

Better deal today.
Short put(Jun 21 2019 $185) @ $6.65
Short put(Jan 17 2020 $190) @ $12.20
Short put(Jun 19 2020 $195) @ $16.00
Short put(Jan 15 2021 $200) @ $20.00

Short put(Jun 21 2019 $220) @ $19.25 yield 12.8% if trade above $220 on Jun 21 2019 or assigned for $200.75

hanera · October 10, 2018, 8:04pm

3rd chance came so fast, may be should be lower at $205. That would make short puts then very lucrative.

hanera · October 10, 2018, 10:25pm

Amazingly the word still in use

caiguycaiguy · October 11, 2018, 2:49pm

Apple Signs $600 Million Deal With Dialog for Assets, Staff

https://www.bloomberg.com/news/articles/2018-10-11/apple-signs-600-million-deal-with-dialog-semi-for-assets-staff?srnd=technology-vp

caiguycaiguy · October 15, 2018, 2:52pm

hanera · October 16, 2018, 7:38pm

Apple’s iPhone Customer Loyalty Is on the Rise

Apparently Harriet is an odd ball.

harriet · October 16, 2018, 8:34pm

All it means is I am open minded enough to try new things.

hanera · October 19, 2018, 5:16am

Apple gets Street-high $310 price target from Wedbush

Calling manch

Today close. Put (Jun 21 2019 $220) = $20. 13% yield, much better than rental.

manch · October 19, 2018, 5:54am

Double top?

hanera · October 19, 2018, 6:19pm

Quack technician?
Double top target is $193, about where the 200-day SMA and gap up is.

hanera · October 19, 2018, 6:33pm

Notice the green?

manch · October 19, 2018, 11:14pm

Hey you finally upgraded your phone?

hanera · October 20, 2018, 12:04am

Iphone upgraded long ago. The image was captured using Mojave.

hanera · October 22, 2018, 6:46am

3 Warren Buffett Stocks Worth Buying Now

But the biggest reason, in my view, to like Apple is what could be coming around the corner for the company. Apple is on track to invest more than $14 billion this year in research and development (R&D). It’s pouring an undisclosed but almost certainly significant amount of this R&D money into augmented reality (AR). I think that AR could be a game changer for Apple within a few years.