ADS 468x60

Thursday, January 20, 2011

Apple will rule the world

Is apple a great company? Yes! Should you rush out and buy their stock at $340/share? Probably not!

Here's a better way to play it that can lower you entry, let you use less capital, and still profit whether apple goes up or down!

Most analyst are projecting apple to go up to $400/share. I personally don't have enough money laying around to buy enough apple shares to make it mean anything. So another way to participate in this rally is to sell some apple puts.

Currently, the Jan 12 $250 apple put is selling for around $10, or $1,000 per contract.

You can sell it today and collect $1,000 and still participate in any upside movement. If somehow Apple is below $250 on jan 2012, then you will be forced to buy 100 apple for $25,000. However, you can close this trade early, or roll the option out to a later date. The best part is that you can use the $1,000 to buy something else!


Ben said...

I sold 1 Jan 12 250 put in my virtual portfolio

Post a Comment