by Das Brain
The stock price of Apple is taking it on the chin today, 2 days ago with about a 4% decline, yesterday it was flat, and then today the sell off continued with a 3.5% hit on the downside. In dollar value that is about a $10 decline from Apple most recent stock price high. Currently, Apple’s stock price is trading at $115.98 .
The downward pressure seems to be strong, and is pushing the Apple’s stock price to the next support level of around $114.22 USD. I’m not quite sure if it will hit $114, but hitting the stock price of $115 looks more likely.
One, thing to remember, is that interest in Apple stocks is also very strong, and there momentum might step back in after this sell off of about 8%, to push the price back up. Another thing to note is that the iPhone is due to be released on June 29th, that is only 12 business days. The closer it gets to the iPhone release date I think the more interest there will be in Apple’s stock again and may drive Apple’s stock higher. Apple will also report on July 18th roughly a month away, and this fact may also move Apple stock price higher as investor and traders anticipate better profit due to the overhyped iPhone.
Given all the factors above, I have purchase 2 sets of DITM CALL option contracts for Apple (AAPL). I have been waiting for an opportunity to get in, and this pull back looks to be it. DITM stands for Deep In The Money.
AAPL October 2007Â Â Â Â 110 CALL
AAPL October 2007Â Â Â Â 115 CALL
So, basically I am speculating that Apple’s share price should reach over $110 by October 2007.
Well, looking over at my real-time quote screen, currently Apple’s share price is trading at $116.30, is is already over the strike price of the CALL options I bought, hence the term Deep In The Money (DITM).
I will be reporting the results of this trade, when I close it, but it will be interesting to see what happens the next few weeks with Apple’s share price.
Bookmark at:
StumbleUpon | Digg | Del.icio.us | Dzone | Newsvine | Spurl | Simpy | Furl | Reddit | Yahoo! MyWeb
