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Post Labor Day Apple Trading Strategy

Started by Zach Bass · 10 months ago

There’s growing sentiment that Apple and the markets, particularly the Tech Sector, will rally going into the latter part of 2008. In the near term, there’s technical indicators that the major indices will start this rally soon, as the weekly and monthly charts favor ... Continue reading »

5 comments

  • Ed

    10 months ago

    http://www.marketwatch.com/news/story/stronger-...

    i know i mentioned this in a wildernes post late last week, but zach didn't post it, he's monitoring and censoring my posts---

    of course he can go over to tim's blog and post anything he feels--

    thanks zach, welcome to communist russia--pam

    only zach can post a post with a stop at 170 and then later change it to 169.

    i wonder what happened to all those followers whoset the stop at 170
    reply
  • Zach Bass

    10 months ago

    Ed, the link you added is quite interesting. Your comment to this post would have been so much more useful to the community of readers had you referenced it rather than bash unrelated items. The suggestion that a strong dollar may make it difficult for high fliers like Apple to compete on a global scale is certainly a legitimate concern. But my feeling is that the dollar has a long ways to go on the road to recovery before it would be considered a detriment. In fact, it's hard for me to imagine where a strong dollar would ever be a detriment. So, I guess I whole heartedly disagree with this assertion. Besides, I don't really see how it has relevance to the subject matter of this blog post, which is about trading strategies using options.

    Ed, you find it necessary to use this venue to criticize my actions, but you have the perfect opportunity to help the community with your insights. Please stick to more constructive comments, or I WILL censor them. By the way, you may think this venue is your personal sounding board to say anything you like. Well it's not. So, while I'll be tolerant to a degree, there's only so much that I'll take before moderating you.
    reply
  • marcos

    10 months ago

    What call strategy do you suggest for October calls?
    reply
  • Zach Bass

    10 months ago

    Well Marcos, this depends entirely upon the risk you are willing to take. But let's assume a low risk, low cost strategy. You could accomplish this with another vertical spread strategy, which is similar to the Bull Put Spread, called the Bull Call Spread. This is where you sell an out of the money Call to offset an in the money Call. This effectively allows you to buy an in the money call at a discount.

    The profit chart looks very much like the Bull Put Spread, but it is a net debit trade, meaning that funds will be debited from your account when you execute the position. It also means that there is a limited upside, as well as a limited downside. But because the net cost is small, the downside is limited.

    You would use this strategy if you are bullish, but think the near term will result in a moderate increase in price. This type of strategy is very useful in our current environment where we have a lot of whipsaw, and you recognize an opportunity for a near-term advance. So I would suggest a way to construct this trade would be to buy an Oct 165 Call and sell an Oct 170 call.
    reply
  • Forex Trading

    3 months ago

    The stock will begin to gain upward movement 4 to 7 trading days prior to ... I have used this strategy when I feel a stock is likely to go down. ...
    reply

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