Apple (AAPL) Beaten Down On DRAM Cost Increase Worries…Buying Opportunty!
by Das Brain
Today Apple’s (AAPL) stock price took a big hit, it was down almost 5%. It went from $133 down to a low of $125, and now currently trading at $127.25. It wasn’t just the increase in DRAM cost that hit the stock, once again the sub-prime loan issue has reared its head and took the Dow Jones Index down currently 325 points…OUCH!
Is this a buying opportunity, hmmm…looks like it to me. For the regular readers of this blog, you know that I love Apple’s stock and have been profiting big on Apple’s (AAPL) CALL option contracts. Read my post “Profiting From A Bouncing Apple (AAPL)”
Today, Apple’s stock went down past a few support levels down to $125, and this was where I stepped in. I bought 3 CALL option contracts for strike price of $135 expiring JAN 08, the option symbol is APVAG. I paid a premium of $13.30 for each CALL option contract.
At last glance at my LEVEL II options quote, APVAG at market close is at $13.80 on the bid.
There are more product announcements coming from Apple, and Christmas is not that far away, if I hold these contracts until December I should do O.K, however I still may sell them early and keep playing the dips like how I outlined in my last post.
I will be heading to Long Beach, California and Las Vegas next week for 2 weeks so when I get back at the beginning of September, I am hedging that Apple’s (AAPL) stock price will be in the 130’s.
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