Week 22 of 2008 trading is finished. Examine the following year-to-date performance.

Apple	NASDAQ	S&P 500	Dow Jones
-5.75%	-3.02%	-3.97%	-3.71%

Now, compare that performance to the AppleOption Portfolios!

AppleOption Short-Term Portfolio (STP)
      Started the January 2008 with $10,000
      Current portfolio value $19,635.88 (after commission/fees)
      Year-to-Date Gain 96.3%

AppleOption Long-Term Portfolio (LTP)
      Started the January 2008 with $25,000
      Current portfolio value $29,785.94 (after commission/fees)
      Year-to-Date Gain 19.1%

AppleOption Auto-Trade Portfolio (ATP)
      Started the June 2008 with $10,000
      Current portfolio value $10,000.00 (after commission/fees)
      Performance since Inception Beginning in June

If you are not yet a member of AppleOption, sign-up today and discover how we trade. We’ll teach you by showing all of our portfolio trades in real-time. Join AppleOption Now!
 

Weekly Review of Portfolio Trades
     

AppleOption Short-Term Portfolio

The STP started the week by selling covers after Apple had made a nice rebound from the recent drop. The trade provided protection to the portfolio while it continues to be delta positive. Tuesday also marked the first day the STP closed with greater than 100% gain year-to-date! In fact, the AppleOption Short-Term Portfolio finished at 102%! On Wednesday, the STP took some risk with our profits and entered a strong delta momentum trade, unfortunately a strong intraday reversal caused the trade to be stopped out.

AppleOption Long-Term Portfolio

The LTP was able to pick up an additional LEAP contract this week. The entry was nearly perfect as the remainder of the week it traded higher than our entry price. Our portfolio is growing well despite being well covered. In the coming week we will need to adjust the portfolio in anticipation for the June 9th WWDC and possible 3G iPhone announcement.

AppleOption Auto Trade Portfolio

AppleOption’s newest portfolio is an Auto Trade Portfolio (ATP) through ThinkorSwim. Many traders are excited to utilize the AppleOption trading style and have expressed great interest in autotrading. ThinkorSwim should have the system set-up and ready for trading in June. While we wish it would be available Monday morning, we would prefer to have a system that was fully functional without errors or problems to best serve AppleOption members. As soon as it is ready for trading, a formal announcement will be made. Between now and then, if you are interested in participating, then make sure you have an active AppleOption membership and set-up a ThinkorSwim trading account.

 
Technical Apple Review
     

 

Over the last three months, Apple has been in a bullish channel that is leading up to the WWDC 3G iPhone release. Of key interest, the 5-day exponential moving average (5-EMA) is at $186.33, the 20-EMA is $181.98 and the 50-day moving average (50-MA) is $166.91. We will continue to see a bullish trend in the up-coming week. Apple has created a strong triple support level at $181. It finished the week just under the $189 resistance line with the next resistance level being $199.

     
Apple News:

AT&T sent the following email to all of its employees stating “No additional vacation will be approved for 6/15 - 7/12.” This is done to ensure proper staffing during an exciting Summer Promotional Launch.

To make an interesting observation is to focus on the dates that are restricted. June 15th is after the Apple Worldwide Developer Conference (WWDC) concludes. The WWDC starts on Monday June 9th with the Keynote address were new products and software has formerly been announced. The conference finishes on Friday, June 13. This leaves the AT&T restrictions starting on Sunday the 15th. Thus, speculation as to whether or not the iPhone will be “released” during the WWDC or simply talked about with a future product release date/event will be determined. Investors won’t know, but there is sure to be a “sell on the news” reaction!

     
Up-Coming Earning Reports:

Apple will announce Quarter 3 earnings on July 24 (after July option expiration).

View which other companies releasing earnings next week
None of these reports should have a great influence on the general market.

     
Apple Analyst Ratings:

Company	Analyst	Date	Rating	Target Price
Goldman Sachs	David Bailey	23 May 2008	Buy	$220
Merril Lynch	Jeff Fidacaro	23 May 2008	Buy	$215
Oppenheimer	Yair Reiner	22 May 2008	Outperform	$235
Argus	Wendy Abramowitz	14 May 2008	Buy	$212
AmTech Research	Shaw Wu	12 May 2008	Buy	$220
BMO Capital Markets	Keith Backman	12 May 2008	Outperform	$205
Piper Jaffey	Gene Muster	6 May 2008	Buy	$250
Caris & Company	Shelby Seyrafi	6 May 2008	Above Avg	$200
RBC Capital Markets	Mike Abramsky	5 May 2008	Outperform	$220
Bank of America	Scott Craig	24 Apr 2008	Buy	$180
Citigroup	Richard Gardner	24 Apr 2008	Buy	$248
Deutsch Bank	Chris Whitmore	24 Apr 2008	Buy	$235

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