“Many traders prefer ‘cheap’ options even though the real value of the option is related to the price and expected movement of the stock over time,” Michael Shulman of InvestorPlace writes for TheStreet.com. “For this reason, many otherwise intelligent and successful traders avoid ‘high price’ calls and puts even though they represent great value and opportunity. The best example of this is Apple (AAPL) options.”
“If you believe Apple shares still have another $100 to run before the end of 2011, as JPMorgan analysts estimate, well, then AAPL is still a good buy,” Shulman writes. “The company is about as close to bulletproof as you can get. It has more cash than the Fed. It makes superior products that people are willing to pay for, giving it the best margins in the hardware business.”
“Personally, I like the AAPL April 350 Calls, now selling north of $16,” Shulman writes. “For options traders who are used to paying only a few cents or a few bucks for their trades, this may seem too rich. After all, isn’t the allure of options the ability to make outsized gains without tying up a bunch of capital? While that’s true, isn’t a $16 call that goes to $32 the same as a 20-cent option that goes to 40 cents? What’s more, as with most things in life, you usually get what you pay for. Cheap options are often cheap for a reason.”
Full article here.
MacDailyNews Take: As with Macintosh, with AAPL, you get what you pay for.
[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]
Alright MDN. I’ve had all I can take of the 12 year old girl in the display ad posing sexy like a 22 year old pole dancer. Can you get another ad from that company or something?
Alright MDN. I’ve had all I can take of the 12 year old girl in the display ad posing sexy like a 22 year old pole dancer. Can you get another ad from that company or something?
if you believe iPhone will be on VZ, not to mention the other carriers in 2011… you might want to look at option puts on AT&T… Apple helped them gain customers, now they will lose them…
if you believe iPhone will be on VZ, not to mention the other carriers in 2011… you might want to look at option puts on AT&T… Apple helped them gain customers, now they will lose them…
Take me to the browser, please.
One of the things that really annoys me on this iPad MDN app is the fact that I can only open links in this overlay screen.
Please add a button/control that allows me to open the content of the overlay screen in safari.
Take me to the browser, please.
One of the things that really annoys me on this iPad MDN app is the fact that I can only open links in this overlay screen.
Please add a button/control that allows me to open the content of the overlay screen in safari.
hey MDN,
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options have nothing to do with value, they are just random noise for traders, who just happen to be lucky or unlucky.
AAPL shares are for investors, like me
hey MDN,
” width=”19″ height=”19″ alt=”grin” style=”border:0;” />))
options have nothing to do with value, they are just random noise for traders, who just happen to be lucky or unlucky.
AAPL shares are for investors, like me
Options can also be for someone who does not haev the money to invest in owning the full share amount but gives them the ability to share in the profits of movement.
Options can also be for someone who does not haev the money to invest in owning the full share amount but gives them the ability to share in the profits of movement.
@ Nerd Beautiful
Two of the best Safari extensions I’ve installed are ClickToFlash, Adblock and ReadableFacebook…. no ads appear anymore – and it’s the best thing I’ve done ever for improving my web browsing experience… Highly recommended!! Go get them, try them out and see if it helps. I don’t see any ads on this site, no flash, nothing but content. Facebook is so much cleaner and simple, it’s actually fairly usable now. I’ve gotten so used to it, that I’d go crazy if I had to go back to the way it was before I installed those extensions.
@ Nerd Beautiful
Two of the best Safari extensions I’ve installed are ClickToFlash, Adblock and ReadableFacebook…. no ads appear anymore – and it’s the best thing I’ve done ever for improving my web browsing experience… Highly recommended!! Go get them, try them out and see if it helps. I don’t see any ads on this site, no flash, nothing but content. Facebook is so much cleaner and simple, it’s actually fairly usable now. I’ve gotten so used to it, that I’d go crazy if I had to go back to the way it was before I installed those extensions.
… correction: Three of the best Safari extensions…
… correction: Three of the best Safari extensions…
@ pdxflint:
Could not agree more. ClickToFlash is especially awesome, but the rest are just as good.
@ pdxflint:
Could not agree more. ClickToFlash is especially awesome, but the rest are just as good.
@ Nerd Beautiful
Those ads are usually targeted at people by where they have been browsing.
What are “puts?”
@ Nerd Beautiful
Those ads are usually targeted at people by where they have been browsing.
What are “puts?”
@pdxflint
There are three kinds of people in the world;
Those who are good at math, and those who aren’t.
@pdxflint
There are three kinds of people in the world;
Those who are good at math, and those who aren’t.
There are 10 kinds of people in the world:
Those that understand binary, and those that don’t.
There are 10 kinds of people in the world:
Those that understand binary, and those that don’t.