Despite the huge personal win in SPKL, my position in AAPL has been the biggest win of 2007 from a trading perspective.
I took my position when I published the August 18th edition. I mention it near the end. I bought 10 January ’08 AAPL calls at $12.30 per call- total investment $12,300. I purchased the right to buy 1,000 shares of the stock at $130 until the options expire in January.
The stock closed at a little over $170 on Friday, and that $12,300 investment is now worth about $43,000. A fabulous trade for two months, and one of the best of my life.
I am tempted to cash in. The chart told me $172 was an LPO (logical profit objective) for the stock. However, I have been doing a little reading of late, and I just might hang in there, or perhaps only sell half.
Here’s what’s happening in my view.
- Early returns on the iPhone are coming back with huge customer satisfaction numbers.
- 16% of respondents who are planning a cell phone purchase in the next 6 months are planning to buy the iPhone- that’s an amazing number
- At the end of this month, Apple is getting ready to announce a whole bunch of new products- the new Leopard operating system is driving the highest MAC sales cycle in history
- iPhone sales won’t peak until about 2010- long growth cycle
- iTV could take over the holy grail of entertainment- the family’s den.
In short, I now believe AAPL could be headed to something more like $225. Here’s the problem- do you buy it here? I hope you already own it, but if you don’t pray for a drop off into the mid 150′s- it may never come, but who knows. Tough to buy at this lofty valuation, but you might just want to hold your nose and take the plunge.
If you bought it when I first recommended from the $95 to $124 range, there might just be more upside, so you might want to hang in there a little longer despite the huge win.
Comments and questions are welcome.
Hi
I,ve been following oTC for a year or so and I,ve found your recommendations pretty interesting and somewhat accurate. I have profited on many and only lost on a few. apple whan you recommended it looked good but I only bought 1 Jan 170 call for $448 Ijust sold it off on Oct 26 for just over $2300.00….than you for that !
so I also believe it’s going to top $200.00 in the near future so I picked up 2 jan210 calls on oct 30 and their up over 10% in less than 1 day hope it continues
thanx again and keep it comming
Editor: That was one of the best trades I jumped into in a while. I believe I am going to hold my Jan 130′s through the year and see where we end up.
Editor,
My brother has been your emails to him so I am able to keep up with your newsletters.
I have tried at least 3 times to get onboard. Is there any way that you could check to see if my most recent attempt is successful? Thanks and GBU Larry
Editor: Using lstark0920@comcast.net, I will check for you. All you have to do is input your email address and reply to the confirmation email you receive.Then, if you want to be sure you get it, you have to white list the newsletter in your email software. There are many different ways depending on the software you use. You will find instructions on the right hand menu bar at the home page. Also, for an issue like this in the future, you can simply email me directly at editor@otcjournal.com.
tough few days… are you still holding your options? panic selling overdone or are we in for a rough stretch? any comments would be appreciated.
starts to look even ‘cheap’ as i type this at $169-170 range
tks
Editor: Yes, but of course I wish I had sold. I covered it in my weekend edition, which you should have received as I wrote this. I am a buyer in some form on Monday. However, if it breaks much below $165, it is probably going to end up in the high $140s, where I would really put some money to work.