First Stock Rise since iPhone Launch – 96% Profit

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Jul 03 2007
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Finally after two-days of non-reaction despite the good sales figure from the iPhones, Apple Inc. (Nasdaq: AAPL, stock) decided to flex its muscle to show what it can do to defy gravity. I’ve done some questionnaires to collect feedback from people on the ground what they thought about iPhone. It’s not difficult to find stocks forums to carry on the free survey. Guess what, most of them have good things to say about iPhone, the only complaint was the little screwed-up by AT&T. Even the high price didn’t deter these initial skeptical people from getting a unit and almost all these new owners sing the praise-song.
The external factor which helps Apple stock is the market pulse – stocks advanced Tuesday ahead of a shortened holiday schedule for U.S. markets, with investors drawing confidence from a smaller-than-expected dip in factory orders and new merger-and-acquisition activity. The market was relieved to hear from the Commerce Department that U.S. factories saw demand dip in May by just 0.5 percent; most analysts had predicted a decline of more than 1 percent.

If you do not know yet, today’s stock markets trading are set to close early at 1 p.m. EDT ahead of the July 4th holiday. So the bargain hunting exist throughtout the morning trading session. Guess “luck” is on my side this morning, who says luck doesn’t play a role in making money investing stocks?
This is one of the smallest trading positions I had which was opened on 21st May 2007. I had only three contracts (pathetic huh?) of AAPL Jul 110.0 Call. Unfortunately the profit locked is below 100% (just 96 percent) but I guess I should complain much as I need to trim my positions as well to release some funds. Noticed the resistance-support level of $119, $122 and $125 per share from the chart? It was the $125 level of which my emotional was put to test. And the moment the “red candle bar” appeared, I was freaking fear of a sudden drop, not that I’ve not seen such incident happened before. So I just hit the “Sell” button.
As of now, you can see what happened – I sold too early, if only I waited for it to cross the $125 level, I could make more money. Looking at the chart, did you notice the high volume which I circled that I suspect could be a break-out for $125 resistance? Not sure if any human traders can ever control their greed-fear emotion when come to stocks investing or trading option. But then again as long as you make money, you should be grateful as there’s always a trade opportunity next time.

Furthermore the time-value is eating up my option as the next Friday expiration is less than three-weeks away. So, it’s wise to take money off the table *trying to console myself*. Well, in fact I still have some positions opened which have October’s expiration, but I’ll leave that for another posting *grin*. Don’t you love Apple and Steve Jobs?

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apple is a dependable stock not like vonage which ended up as a toilet stock

agreed erin … as long as steve is around, you can milk this stock again and again …


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