AAPL. One of the most liquid option trades out there, and certainly one of the most popular stocks to trade. It was only a year ago when AAPL was seemingly up 2% each day before the opening bell. Now it seems everyone is down on the stock, and this has pushed it price down recently to new 52 week lows.
This morning with AAPL trading near its lows for the session I sent out a text alert. Text alerts are for OM members and are not buy or sell recommendations. They are trade ideas and in this instance I was already in the calls. I felt confident a move was about to occur and with the price falling I felt there was no better time to trade for this move. This is what I wrote:
I am in AAPL 435 weekly calls at .68 they are .47 x .48 and I think they will rally to $1.50-$2.00 b4 the close tomorrow. -- UPB
Now I was early to the rally, just like I was for the rally in GDX yesterday. The GDX $36 calls I tweeted at .32 ended up hitting over $2 today. I had a feeling we were going to see a similar move with AAPL.
Sure enough AAPL did recover as it blasted over $430 a share. Those options at the $435 strike no one wanted to buy at $.47 were now $2.00. I think the AAPL rally will continue tomorrow and into next week. Way too many bears out there, and everyone calling for $300's. We may have seen our lows. There is only one problem going forward.
The powers that be need to hold AAPL down. If the stock rally's over $440 a share tomorrow I will be streaking through Time Square in nothing but a Speedo. So while I'd love to see AAPL rally tomorrow just make sure it stays a fraction below $440. Thank you. Trust me the tourists already have enough to feast their eyes on in Time Square.