Apple: Buy Now, Do Not Hesitate

And if you don't buy, at least sell some puts

   

Apple (NASDAQ:AAPL) is the best company on the planet and is now trading at a considerable discount based on valuation to the S&P 500. It is the only mega cap among tech or consumer brands growing in serious double digits. It dominates its markets.

Buy it. Now.

Forget the traders. Forget the nonsense and the noise. Deep technical support is $520. The real technical support price – to mind – is here, around $540. Yes, I can talk technical. But why bother, with the best company and the most undervalued stock on the planet?

If you have a two day or two week time horizon, sorry, no advice for you today. If you are long term investor, you already know what I am telling you. So who am I trying to reach right now?

About everyone else. Swing traders with at least a seven week time horizon – that is when Apple’s earnings come out, January 22nd. Long term investors with less capital than they need to buy as much as Apple as they want to. And even some of you who speculate.

Here are some ways to buy/trade/invest in Apple, right now.

LEAPS on AAPL

If you want to go long and enjoy the leverage of provided by a call, buy a long term, deep in the money LEAP. A January 2014 $500 call – a LEAP – will cost you a hundred bucks. Once profit taking is done, and the idiot traders leave us alone, and Apple begins to rise again, oh joy.  If it goes to a previous high any time in the next thirteen months you have a double. If it breaks through and runs, well, could be a wonderful thing.

PUTS on AAPL

I own Apple at different prices. The last slug I bought in the mid-600s. I also sold $590 puts, not great timing but I am not worried. At these prices you can sell short term puts for income, as I do in my Options Income Blueprint service,  and depending on how much cash you want you can do it every week or out to 2015. If you sell weeklies, you can get a return of more than 20% a year if you are nimble. If you just want a lug of cash and are willing to risk of being put the stock – it does not happen often but it does happen – sell a January 2014 $540 put and you put $88 a share in your pocket. That means if you are put the stock you cost basis is $452 – and at that price, my cockapoo Sumo would trade his morning treat for Apple shares.

Do not let the gift the market is giving you pass you by.

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