2013 LEAPS

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    Posted: 01 September 2010 04:19 PM

    Apple II+ - 01 September 2010 12:06 AM

    2013 LEAPS will be listed on Monday, September 13, 2010.

    I’ve waited until today’s special event was over to raise the subject in case there were any major price movements, but it’s still trading with the market.

    So… To those who have been long LEAPS in the past, is there any point in rushing to buy calls on the day of issue, in your opinion? I imagine they would be thinly traded, but perhaps not so bad for Apple. I’m thinking of selling some stock to buy 2013 calls. I’m relatively new to options so not sure how to calculate the ‘right’ price, but looking at Jan 2012 calls, looks like the market is giving Apple a price tag of $300 around that time, and a higher premium will be place on 2013.

    :apple:

         
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    Posted: 01 September 2010 05:59 PM #1

    Its difficult to know when to get in, but you’re paying for time remaining on 2013s. I would wait for a pullback. Personally, I wait till the underlying stock is touching the bottom bollinger. This is not offered as financial advice… you’re milage may vary, batteries not included.

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    Posted: 01 September 2010 06:09 PM #2

    stevereel - 01 September 2010 08:59 PM

    you’re milage may vary, batteries not included.

    Of course smile

         
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    Posted: 14 September 2010 01:35 AM #3

    Well, they’re here. After the first trading day, e-trade shows minuscule volume on all calls. Peculiar is the fact that highest volume (a whopping 26 - j/k) is on Jan 2013 310s which at about $45 give AAPL expected value of over $350 at that time, so the Street (or whichever investors are buy the calls) are quite bullish on Apple long-term?

    I sold some common and have cash to jump in; tempted to get some 250s (at about $70)

    Anyone else buying this early, or all holding onto 2012’s and such and planning to roll later? (SNIPUS?)

         
  • Posted: 14 September 2010 01:43 AM #4

    Roman - 14 September 2010 04:35 AM

    Well, they’re here. After the first trading day, e-trade shows minuscule volume on all calls. Peculiar is the fact that highest volume (a whopping 26 - j/k) is on Jan 2013 310s which at about $45 give AAPL expected value of over $350 at that time, so the Street (or whichever investors are buy the calls) are quite bullish on Apple long-term?

    I sold some common and have cash to jump in; tempted to get some 250s (at about $70)

    Anyone else buying this early, or all holding onto 2012’s and such and planning to roll later? (SNIPUS?)

    I keep my 2012 calls (300)for the moment… but will keep my eye on the 2013’s…

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    Posted: 15 September 2010 03:13 AM #5

    New strike prices. Highest volume by far (82) is at 400, trading around $20 - so lots of people expecting AAPL to surpass $420 in just over 2 years? And I thought DT was uber-bullish…

    Not sure what to make out of this, these are some expensive calls that probably figure an economic recovery coupled with Apple’s continued growth.

         
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    Posted: 15 September 2010 03:42 AM #6

    adamthompson3232 - 15 September 2010 06:36 AM

    Encouraging but does 82 = “lots of people”?

    Compared with volume on the other calls, yes (volume on most is actually zero - at least as shown by e-trade). I’ve never watched LEAPs at their inception, so I think I’m going to hold off (maybe get more 2012 instead) and see what happens as the volume picks up.

         
  • Posted: 15 September 2010 04:04 AM #7

    Why go LEAPS when you can buy Jan ‘11 or even Nov ‘10 calls?

    If Apple doesn’t move up now, then the Apple thesis is broken. I’m more confident very short term rather than long term. Who knows what might happen in a year or two?