If you’re still holding your Apple Inc.’s (Nasdaq: AAPL, stock) shares or option contracts as of writing time (1:30 pm E.T), I hope the market will be kind with you for the subsequent hours. As I’ve blogged about 4 hours ago, I had prepared myself to take money off the table today, no matter what (you can read it here Ready to take profit on Apple’s Special Event today), before the “Special Event” starts. I’m not sure, somehow I don’t have a good feeling about what Apple has to say. Furthermore, Apple was trading near the all-time high since yesterday’s jump.
I opened the position because the U.S. President Reassures Stock Investors on 8th August, silly me huh? Well, actually it was because Apple’s stock price reached the support level of $125. But as with the nature, it wasn’t the right timing as the stock price plunged further to unbelievable low of $112 at one point, breaching all the support, be it $125 ot $122.
However there was a reason why I bought the contract with Oct expiration – because Apple’s earning announcement is scheduled on Oct and as with historical behavior, the optimism with the stock will gradually increase towards the date.
29th Aug was the date I added more contracts to my trade – mostly because the market was flushed with opinions that Bernanke will act, a hint that interest rate might be cut. Due to that reason Dow Jones gained by almost 250 points – Bernanke Prepared to Act, Hint to Cut Rate?. Chart-wise, Apple Inc, showed strength by gapping up compared to the closing price the day before (28th Aug) and the decision to add more contracts was decided after 45-minutes of trading started based on the price-volume.
However there was a reason why I bought the contract with Oct expiration – because Apple’s earning announcement is scheduled on Oct and as with historical behavior, the optimism with the stock will gradually increase towards the date.
29th Aug was the date I added more contracts to my trade – mostly because the market was flushed with opinions that Bernanke will act, a hint that interest rate might be cut. Due to that reason Dow Jones gained by almost 250 points – Bernanke Prepared to Act, Hint to Cut Rate?. Chart-wise, Apple Inc, showed strength by gapping up compared to the closing price the day before (28th Aug) and the decision to add more contracts was decided after 45-minutes of trading started based on the price-volume.
September 5th, 2007 by financetwitter
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