“Apple (AAPL) has started off 2012 with a bang as it rapidly surged from $400 to $600 in mere weeks,” Paul Zimbardo writes for Seeking Alpha.
“I perform a weekly analysis of Apple’s stock, options, recent news, and competitive analysis,” Zimbardo writes. “In essence, the investment objective is to capitalize on Apple’s volatility by selling out-of-the-money options to generate weekly income without sacrificing long-term returns.”
Zimbardo writes, “I predicted this past week that Apple would hit $720 within the next 12 months. Furthermore, I noted that ‘if the iPhone 5 is as revolutionary as I expect it will be, we could see that target reached in 2012 alone. If the iTV is released this year, the sky is the limit.’ A 15% 12-month gain following a 50% rise is nothing to ignore, but this is the Apple we are used to. I know Apple has been performing like few other stocks in history, but tell me that you do not get at least a little nervous when you see how the long-term chart has essentially turned exponential in the last three months. I fully stand by my price target, but I do not think a dip back to the low $600s is out of the question. Absent any significant breaking news, I am a buyer of Apple at any dips below $600.”
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