Apple Sell Off !!!
June 12th, 2008. Posted by AppleOption
As of 11:43am PDT, Apple has fell $9! Since the day after the WWDC Apple was trading as $186… now we have watched the stock fall to $172.
It is a painful process. Difficult to watch. Both the STP and LTP portfolios we excellently positioned heading into the WWDC. We had proper coverage. The decision to uncover much of the portfolio has cost us in the fall. AppleOption has picked various levels of support and moving average trends to double down or roll our positions to lower strikes.
There will be a rebound, but we don’t know when. This fall shouldn’t be as bad as January/February, but has already been painful. The goal and thought process at this time is to reposition trades out in time and down in strike. The LTP is ideally positioned. The Short-Term Portfolio will need to move from July contracts into October. This also gives us two earning cycles. To recover premium.
We need patience in this market, timing is critical on the fall. The repositioning will likely happen on Friday unless we see a nice reversal today.
As for the AppleOption Auto-Trade Portfolio, the goal is momentum trading. There currently is a bearish trend. We have seen a 40% retracement from the recent rally, so there shouldn’t be much more. The ATP is timing the market for a better entry.