Earnings preview Apple AAPL

By | Earnings | No Comments

Apple (AAPL) is set to report its highly anticipated June results today i.e. July 24, after the market close. Besides Google (GOOG), Apple (AAPL) is another popular stock with option tarders to play earnings. What to Expect: According to briefing.com, here is what traders are expecting: The Street expects Q3 EPS to grow 33% year-over-year to $10.38 and revenues to grow 31% YoY to $37.43 bln. Not surprisingly, the Street estimates are above the company’s typically conservative guidance of EPS of $8.68 and revenues of ~$34 bln issued on the Q2 release (April). Yet the Street has set relatively low…

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Will You Trade Apple Earnings Like Warren Buffett Traded Burlington Northern?

By | Earnings, Option Trading Strategy, Trade Ideas | No Comments

Apple (AAPL) is scheduled to report earnings on April 24th. I have already shared some interesting things about this quarter that you may want to read before playing Apple earnings (Please read to get on-board). So, assuming you want to trade AAPL earnings, you need to answer following (for this earning announcement only) – Are you Bullish? Are you Bearish? or Are you Neutral and don’t care whether Apple drops or goes up after earnings, but you still want to trade without a directional bias? How much will Apple move? Whether bullish, bearish or neutral, you need to decide how…

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Don’t Trade Apple Earnings Without Reading This First

By | Implied Volatility, Investment Strategy, Option Trading | No Comments

Apple Inc. (AAPL), the biggest publicly listed company on the planet is about to announce earnings on Apr 24th, after markets are closed. It is estimated that nearly 200+ Hedge funds have AAPL shares in their portfolio. And it is one of the most commonly talked about stock on almost every main stream financial media, website, forums, blogs, etc. Here are some of the interesting things you may want to know before you go for that option trading strategy. Since the last quarter earnings announcement, AAPL stock is up roughly 40% as of now (@$586 current market price). During this…

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AAPL +35.6%; MCO +3.5%

By | Past Performance, Trade Ideas | No Comments

Basic members were alerted for 2 free trade ideas. One is closed for nice gains while other trade has been successfully rolled to next month. Starting with Moody’s (MCO) trade idea. The basic premise for that trade was shorting of Moody’s by hedge fund manager David Einhorn, who correctly questioned the health of Lehman Brothers four months before its collapse. I wanted a trade that will still yield profit even if I am wrong. The trade idea (An Option Trader’s Way to Short Moody’s) was first shared with the Basic OP Members (Membership is free until Dec 2009, click here…

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A Bearish Apple (AAPL) Trade

By | Trade Ideas, US Market | 11 Comments

The Apple Worldwide Developers Conference (AWDC) is starting today and AAPL stock has been on an upward movement for past few weeks. At OptionPundit, we played this event around this time last year and made good gains. While the same approach (Bearish bias) has pretty good chance of making money, context however matters. This time around we have two key things in play a) Uncertainty around Steve Job’s return and b) General Macro Economic Environment. So read my post through skeptical lenses. There are a lot of speculation around “what if” Steve returns and “what if he doesn’t”. Most markets…

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A New World? or Is it the Same Old Thing?

By | Daily Report | No Comments

As of this writing, U.S. stock-index futures and Asian shares rose after Apple Inc (AAPL). and EBay (EBAY) Inc. reported profits that beat analysts’ estimates, fueling expectations the slowdown in consumer spending may be easing but let’s wait for UPS and others to tell us more. Bloomberg tells – Short sellers are increasing bets against developing-nation stocks by the most since March 2007, a signal the biggest rally in 16 years may fizzle as profits plunge from Brazil to Taiwan. Short interest in the iShares MSCI Emerging Markets Index fund, which tracks equities in 23 developing nations, climbed 51 percent…

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