by Michael Shulman | April 18, 2012 8:29 am
The recent sharp downturn in Apple (NASDAQ:AAPL) 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. 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.
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. Learn more about trading weekly options in this free short video. For purposes of disclosure, Michael own shares in Apple.
Source URL: http://investorplace.com/2012/04/options-traders-can-squeeze-more-juice-out-of-apple/
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