It appears both Apple Inc.’s (Nasdaq: AAPL, stock) and Google Inc. (Nasdaq: GOOG, stock) behave very well in the morning trading session today. So I’ll just let it trade whichever direction it wish to. As blogged earlier, Google is expected to announce its earning tomorrow, Thursday 18th Oct 2007 after the market close. What would be my strategy this time around?
Although I’ve only small amount of contracts in GOOG Nov 570 Call Options, I planned to take some money off the table tomorrow before the announcement while leaving one contract as the gambling-chip to see if I can set a new record in terms of profit percentage. If the plan goes well, I’ll be a happy person as the stock will register another gap-up (and a trophy) but if things do not work accordingly, my profit (you will know by tomorrow of the quantum) should be enough to cover for any losses. Nevertheless the Nov Call Option still has some intrinsic value so I can take the risks.
As for Apple stocks, obviously it’s trying to establish a new support level of above $172 level this morning after tried for the last six trading days. Whoa! Go Go Go *crazy me*. If my strategy works for Google, I plan to apply the same to Apple Inc.
It’s been quite some time since I last pay a visit to Citrix System Inc (Nasdaq: CTXS, stock). The company is set to announce it’s earning today, Wednesday 17th Oct after the market close. An RBC Capital Markets Corp. analyst upgraded Citrix Systems Inc. on Tuesday from “Hold” to “Buy”, saying earnings should increase over the next two years as a result of its XenSource software and other products.
Historically Citrix had either met or beat the estimated earnings. Over the last 12-months it registered $1.24 billion in sales and $196.23 million in income, growing at 20% and 5.3% in terms of sales and income respectively. Net profit is at 15.8% with zero debt/equity ratio. Currently trading at a year high, it’s testing the $43 a share level. The price-to-sales multiple is significantly higher than the average for all stocks which is positive. The only concern is the P/E multiple (39.70) which is higher than other stocks in the same category.
I’m considering CTXS Jan 2008 40 Call Option which will give me 93 days before the expiration. Another stock that is on my radar is eBay Inc.
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October 17th, 2007 by financetwitter
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