AAPL - iPad3 - March 7 - Buy the rumour, sell the news.

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ForexForex

AAPL - iPad3 - March 7 - Buy the rumour, sell the news.

This is my trade setup for Tuesday March 6, 2012. AAPL (and the QQQ) is due for a pullback and they make up 17.5% of the QQQ, QQQ options are cheap. iPad3 is released on Wed March 7, so enter position the day before. I believe that the QQQ puts will out perform the AAPL puts.

Buy March9 QQQ ATM (65 ?) weekly puts on Tuesday 6, should be about $0.60. Sell Thursday or Friday.

AAPL
QQQ
 
you made a point. I played this strategy when appl or goog release earning, I found AAPL/GOOG options are expensive at that moment, if gamble wrong on earning, loss are massive, so I do not hold option positions through AAPL/GOOg earning.

I use NQ to trade those earning event, pretty effective, managable (use stop sell/buy). QQQ options are better choice in this case too, I admit.

I am monitoring AAPL's correction signal, but maybe it is too early. AAPL is in classical textbook trend. most time I am buying calls, occasionally I buy puts. just day trade AAPL options. it is very risky to hold overnight.





Quote from ForexForex:

AAPL - iPad3 - March 7 - Buy the rumour, sell the news.

This is my trade setup for Tuesday March 6, 2012. AAPL (and the QQQ) is due for a pullback and they make up 17.5% of the QQQ, QQQ options are cheap. iPad3 is released on Wed March 7, so enter position the day before. I believe that the QQQ puts will out perform the AAPL puts.

Buy March9 QQQ ATM (65 ?) weekly puts on Tuesday 6, should be about $0.60. Sell Thursday or Friday.

AAPL
QQQ
More...
 
....forex, nice idea, i like the trade setup, i think i will get into it mon or tue....as a very rough calculation, if QQQ drops about $1 (about 1.5%) or more, looks like the put could about double...



Quote from ForexForex:

AAPL - iPad3 - March 7 - Buy the rumour, sell the news.

This is my trade setup for Tuesday March 6, 2012. AAPL (and the QQQ) is due for a pullback and they make up 17.5% of the QQQ, QQQ options are cheap. iPad3 is released on Wed March 7, so enter position the day before. I believe that the QQQ puts will out perform the AAPL puts.

Buy March9 QQQ ATM (65 ?) weekly puts on Tuesday 6, should be about $0.60. Sell Thursday or Friday.

AAPL
QQQ
More...
 
I dont get this post.

If the Qs drop on that day it's because AAPL is collapsing so you better off buying the AAPL puts not vice versa.

As far as the risk, you are buying, not writing, therefore your risk is known.
 
Quote from Traveler:
Would you please keep your posts related to AAPL and related trades in one thread only?
More...
Could you provide a link to the thread you have in mind? That would help with my answer.

Quote from FreakofNature:
I dont get this post.

If the Qs drop on that day it's because AAPL is collapsing so you better off buying the AAPL puts not vice versa.

As far as the risk, you are buying, not writing, therefore your risk is known.
More...
Your concerns are all mentioned in the original post.

collapsing? I prefer the term I used which is pullback, but correction is also fine.


:)
 
Quote from EliteTraderNYC:

Why would AAPL be dropping on Tuesday? Just because the are coming out with news? My chart shows bullish, still.
More...
That's right. But the news is on Wednesday March 7 so I figure the AAPL pullback will be on Wednesday or Thursday, that's why I recommend to enter position on Tuesday, March 6.

To me this is a classic example of Buy the rumour, sell the news , and the charts are in the "Buy the rumour" stage. "Sell the news" comes after details of the iPad3 are released, scheduled for Wednesday March 7.

:)
 
This might be my 3rd prediction in 7 years on this website.

And even then, it's more of an observation.

My family has an IPad 2. What world-shaking improvements can be made to this product? Sharper graphics, ok, add SIRI (already on iphone), ok, faster page turns, ok. But this seems to be the "same-old-same-old" stuff.

QUERY: Might there be a chance to declare this first product after Job's death, a fizzle? And then extrapolate that feeling into an observation, that Apple's rates of improvements might have peaked?
 
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