Going to load up on AAPL options mid February.  Not going to sell my house, but am selling an antique Western Union Ticker Tape Machine (complete with globe, machine and pedestal) -$20,000.  Also selling a restored 1969 Mustang fastback that is practically new with extras - $22,250.
If interested please contact me off-line at .(JavaScript must be enabled to view this email address)

Gregg Thurman - 18 January 2009 12:59 PM

Going to load up on AAPL options mid February.  Not going to sell my house, but am selling an antique Western Union Ticker Tape Machine (complete with globe, machine and pedestal) -$20,000.  Also selling a restored 1969 Mustang fastback that is practically new with extras - $22,250.
If interested please contact me off-line at .(JavaScript must be enabled to view this email address)

Which options are you buying?  Why mid February?  Thanks.

Gregg Thurman - 18 January 2009 12:59 PM

Going to load up on AAPL options mid February.  Not going to sell my house, but am selling an antique Western Union Ticker Tape Machine (complete with globe, machine and pedestal) -$20,000.  Also selling a restored 1969 Mustang fastback that is practically new with extras - $22,250.
If interested please contact me off-line at .(JavaScript must be enabled to view this email address)

To make this topic germane to the AFB, are you selling this items to load up on options or just selling these items?

DawnTreader - 18 January 2009 03:50 PM

Gregg Thurman - 18 January 2009 12:59 PM

Going to load up on AAPL options mid February.  Not going to sell my house, but am selling an antique Western Union Ticker Tape Machine (complete with globe, machine and pedestal) -$20,000.  Also selling a restored 1969 Mustang fastback that is practically new with extras - $22,250.
If interested please contact me off-line at .(JavaScript must be enabled to view this email address)

To make this topic germane to the AFB, are you selling this items to load up on options or just selling these items?

Truly am going to load up on February contracts during the week of February 2 - 6.  I expect AAPL to set a February low then.  My investment tool will be a just in the money Bull Call spreads, which should yield me about 40% in less than 3 weeks.  At the moment that looks like the FEB 70/75 Call Spread.  I anticipate being able to purchase them for $3.50 yielding 42.8% at February expiry.  All I need AAPL to do, in order to make that gain, is close above $75 at expiry.  A $40,014 (includes fees) investment will yield $16,896.

If the tone of Apple’s guidance is better than I anticipate I may go with the FEB 75/80 Call Spread.  If AAPL closes above $80 on expiry I will make 54%.

Bottom line is I am going to buy options with the proceeds from the sale of those items.

Thanks for asking.

I’ve edited the topic title to reflect your item selling intent.

DawnTreader - 18 January 2009 05:12 PM

I’ve edited the topic title to reflect your item selling intent.

Thanks

DT,

The important takeaway from Gregg’s topic is he expects AAPL to trade below $75 in early Feb.

Mace - 19 January 2009 01:00 AM

DT,

The important takeaway from Gregg’s topic is he expects AAPL to trade below $75 in early Feb.

I don’t recall saying that.  What I have said is that AAPL has been holding at $79/$80 on three very high volume days on very serious (to Apple) news.

Even with a decline in Investor Sentiment, due to lower guidance for the March quarter, I expect that there isn’t much in the way of room for AAPL to decline further, if at all.

Having interest in February 70/75 Call Spreads is not the same thing as expecting AAPL to decline below $75.  Far from it, investing in that instrument means I expect AAPL to close above $75 come February expiry.  I’m also interested in the February 75/80 Call Spread for the same reason.  The attraction to the 70/75 is that the return is good, and there is a greater degree of safety (less risk) in it.

Management’s guidance this Wednesday will be the decider for me.