AAPL - Earnings May 1

As a rule of thumb... huge buybacks on the surface look great.... the company is printing cash... the problem is... they are lost in their quest for new areas of growth to invest in. Buybacks are great for shareholders. Very responsible on the part of management. Problem is.... WS wants organic growth.

When a profitable company can't innovate... it buys back its stock.
Large share buybacks are not indicative of a high growth stock nor do they argue for a market superior multiple.
AAPL just may be turning into a granny stock.
But it is an excellent blue-chip granny stock.
 
vanzandt said:
As a rule of thumb... huge buybacks on the surface look great.... the company is printing cash... the problem is... they are lost in their quest for new areas of growth to invest in. Buybacks are great for shareholders. Very responsible on the part of management. Problem is.... WS wants organic growth.

When a profitable company can't innovate... it buys back its stock.
Large share buybacks are not indicative of a high growth stock nor do they argue for a market superior multiple.
AAPL just may be turning into a granny stock.
But it is an excellent blue-chip granny stock.
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I don’t think traders really care about your fundamental analysis. Pretty much every strategy mentioned here is well ITM up over 100% on position. Good luck getting 100% returns with your naked short.
 
FXbeachbum said:
I don’t think traders really care about your fundamental analysis. Pretty much every strategy mentioned here is well ITM up over 100% on position. Good luck getting 100% returns with your naked short.
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Some retail traders might not care about fundamentals, but I can assure you that large AAPL investors such as Warren Buffet and institutional banks care about fundamentals. It may take a while for the fundamentals to take effect, but they still matter.
 
ET180 said:
Some retail traders might not care about fundamentals, but I can assure you that large AAPL investors such as Warren Buffet and institutional banks care about fundamentals. It may take a while for the fundamentals to take effect, but they still matter.
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Fundamentals are insignificant to short-term option trades.
 
ET180 said:
Some retail traders might not care about fundamentals, but I can assure you that large AAPL investors such as Warren Buffet and institutional banks care about fundamentals. It may take a while for the fundamentals to take effect, but they still matter.
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You’re right long term they do. I was just saying those looking to take a piece of pie out of a few day move don’t really care. All these options plays on AAPL were basically earning plays be gone tmr or in a few days. OP was wrong about 180 as of now but buying 167.50 strikes is doing fine. Hopefully there’s room in this trade for us all to make money longs will get it then perhaps you’re right on your shorts eventually.

I just hated trading fundamentals investors are dumb, irrational and emotional I couldn’t do it. Sometimes investors are all about earnings and ignoring rate hikes, other times they’re more concerned with rate hikes and don’t care about earnings. Only time I care about fundamentals is when I buy long term but I won’t be doing that til next recession.
 
FXbeachbum said:
I just hated trading fundamentals investors are dumb, irrational and emotional I couldn’t do it. Sometimes investors are all about earnings and ignoring rate hikes, other times they’re more concerned with rate hikes and don’t care about earnings. Only time I care about fundamentals is when I buy long term but I won’t be doing that til next recession.
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I hear ya. I'm also waiting for the next recession to get more weighted long. I don't think I have to wait that long, but happy selling calls (and then puts if the calls get assigned) until then. Investing on fundamentals takes a lot of patience. But I think it's a lot more reasonable to believe that fundamentals matter than that the market is efficient. Maybe in the long-term it's efficient, but day to day, there's no explanation why a stock's value (not significantly affected by commodities) should change by 4% from one day to the next and then back again on no news, earnings, or dividend. Although I guess that emotion and irrationality creates opportunity for us. I just don't think that the academic idea that markets are always efficient should be taught.
 
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