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Monday, October 19, 2009

Playing AAPL

I will be playing Apple through earnings Monday. I currently have a position in AAPL call options due to last weeks decline. While, there has not been a heavy decline, the stock has consolidated, maintaining a tight range and still in its uptrend.

Below is how I will play AAPL Monday and Tuesday...

1. If the stock declines Monday morning, I will add to my call position.

2. If the stock rise Monday morning, I will enter the report w/the position I currently have.

1. If the stock declines after the report, IMO the most severe decline it will see is 175 to 180. (I am not expecting a breach of 180.) I will enter more long positions w/ a decline to 185 or so.

2. If the stock rises after the report, I will wait to unload the current position until the stock is overbought. (If the report is pretty good, I would not be surprised to see AAPL break 200.)

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