Member Only Download:Please Login or Register to read the rest of this content.

The AppleOption LTP (Long Term Portfolio) has a primary goal of wealth preserve through risk management. At the start of the new year Apple opened at $199.27 and has fallen since then to a close Friday Jan 11th at $172.69 which is a $26.58 or 13.3% drop. Meanwhile the AppleOption LTP has protected us and only sustained a 6.61% drop.

Our portfolio is positioned nicely!

Again, like the STP, we are excited for the earning report on Jan 22nd. It is simply impressive how busy the Apple Stores have been over the last Quarter. We are already seeing a conversion of the average computer user from Windows to Mac OS from the iPod sales. The iPhone is rolling out to more and more countries and as the adopters realize how easy it is to use. We assume the Mac OS market share will continue to grow. This is a promising year ahead.

The trade off is the overall market sentiment. With so much talk about recession, overall market momentum may hold Apple back. Either way, the LTP will preserve our wealth better than solely owning Apple Stock.

Join AppleOption to learn how to protect your long term investments!
Sign-Up Today!

Members Only Download:

Please Login or Register to read the rest of this content.

Market news has been grim, talks of recession abound and despite excellence company performance, Apple Stock falls. The first rule to learn is to always trade market sentiment. If you see a big downward trend, continued momentum, follow the herd. You can do so in many ways… buying a put, selling a call, rolling your position down and/or out in time.

And that’s exactly what we have done in the AppleOption STP. At the start of the new year Apple opened at $199.27 and has fallen since then to a close Friday Jan 11th at $172.69 which is a $26.58 or 13.3% drop. Now when you consider how busy the Apple Store was during the holiday’s, a new product cycle being announced Tuesday at MacWorld, and Apple earnings report due at the end of the month… this stock does not deserve to drop this far in two weeks.

Over this same period of time we have slowly entered our position in Apple. It’s been frustrating as the expected (historically 8%) pre-MacWorld rise in stock price so far has not come. Due to the recent drop, we have been force to roll our initial Jan 08 options to Feb 08. This play now revolves around Apple earnings and an expected return to previous levels of the stock. We also entered a Feb 08 option that moved against us with the current drop, so we took advantage by rolling down two strikes or $10. As a result we should be positioned nicely for the coming month.

In the coming week we look to profit from the MacWorld buy waiting for a stock price surge from excitement, selling a call in the excitement and watching it close out of the money on Friday. This play will help reduce our incurred cost of rolling. Watch for the timing… we’ll issue a trade alert.

“One ought never to turn one’s back on a threatened danger and try to run away from it. If you do that, you will double the danger. But if you meet it promptly and without flinching, you will reduce the danger by half” - Sir Winston Churchill

We want to teach you, that there is always an option! An option to reposition yourself when the market moves against you that will “reduce the danger by half.” And help you learn not to “turn one’s back on a threatened danger and try to run away from it” losing nearly all of your money. Stay calm when others are panic selling. Adjust your positions to take advantage of the move, then be patient. It will take us the next two weeks to realize the benefit from the recent week of trades.

Joining AppleOption will help give you the guidance and patience through the storms.
Sign-Up Today!