Options Traders Can Squeeze More Juice Out of Apple

by Michael Shulman | April 18, 2012 8:29 am

apple dividend 630 300x227 Options Traders Can Squeeze More Juice Out of Apple[1]The recent sharp downturn in Apple (NASDAQ:AAPL[2]) stock is a tremendous opportunity not only to own the world’s best and most undervalued company — yes, undervalued, more on that in a minute — but to create a block of capital that generates income every week, every month, every quarter (or every year). And I am not talking about their new and still-paltry dividend.

In recent days, Wall Street analysts and other financial experts have said the stock has run too much.[3] Technically that is true – the downturn is now almost 10%.  And the stock could sell off a bit more and sit still for a while.

So what?

Here are a couple of facts about Apple.

What about the stock? More facts.

What to do?

Am I an Apple bull? You bet — my target price is $1,200 in the next 1-3 years.  And as my frequent readers know, I love generating weekly income from selling calls and puts.

One last note – do nothing on Monday or Tuesday of next week, as Apple reports earnings after Tuesday’s close. I have no idea how Wall Street is going to react to what are likely going to be blowout earnings.

Michael Shulman is editor of Options Income Blue Print[4]. Learn more about trading weekly options in this free short video[5]For purposes of disclosure, Michael own shares in Apple.

 

 

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/03/apple-dividend-630.jpg
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. the stock has run too much.: http://blogs.wsj.com/marketbeat/2012/04/16/apple-shares-dive-shareholders-react/
  4. Options Income Blue Print: http://optionsincomeblueprint.kajabi.com/fe/13713-my-income-secret-weekly-options
  5. free short video: http://optionsincomeblueprint.kajabi.com/fe/13713-my-income-secret-weekly-options

Source URL: http://investorplace.com/2012/04/options-traders-can-squeeze-more-juice-out-of-apple/
Short URL: http://invstplc.com/1aLFHiv