Homepage / Investment / Apple appeal: Some traders are trying to make extra money off the tech giant
1win официальный Сай Базовые правила и условия игры в kazino online на настоящие деньги Ana amaç çevrimiçi kumarhane 7slots: önemli avantajlar ve kategoriler Как начать игру в казино онлайн на настоящие деньги 1win Apk: Um Melhor Aplicativo Pra Jogos De Cassino Aqui No Brasil” 1win Apk: Um Melhor Aplicativo Pra Jogos De Cassino Aqui No Brasil” Mostbet Azerbaycan Rəsmi Casino Giriş Və Qeydiyyat Mostbet A Миссди Ххк Cassino Online Operating System Melhores Jogos At The Bônu 1win Mali Site Officiel des Paris Sportifs et Casino Inscription 1xbet Aviator How To Play The Aviartor Game On 1xbet In Nigeri прохода 1win Официальный Сайт Букмекерской Конторы же Казино 1ви Скачать Пин Ап Казино%3A Мобильное Приложение Pin Up Be Laurence Escalantes online casino empire feels heat of US lawsuits 1xbet Paid For Over $836, 000 To A Player From Africa Казино Покердом Играть Онлайн Бесплатно%2C официальный Сайт%2C Скачать Клиен Бесплатные Игры Казино Слоты И Игровые Автомат “казино Pin Up%3A находимся Вместе К вожделенной Мечте Ücretsiz Slot Oyunları Silvergames’te Çevrimiçi Oynayın Mostbet Bookie: Legjobb Szorzók És Élő Fogadási Élmény Online Mostbet Login To Your Online Casino Personal Account In Bangladesh! Top 10 Best Online Gambling Dens In 2024 Tested & Approve Powerful casino tactics in 2024: 7 vital methods for athletes Guide to Online Casinos in Canada “Online Kumarhane Oyna Çevrimiçi Kumarhane Nolimitwa Legalzoom Hisse Geri Alım Programını 75 Milyon Dolar Artırdı Yazar Investing Co Как играть в симуляторы в онлайн-казино Вавада Игровые Автоматы Демо Играть Бесплатно нет Регистраци Glory Casino: Top Online Casino Video Games In Banglades Рейтинг Надежных Онлайн Казино Лучшие Топ Клубы Росси Fortune Tiger Slot Review: Análise E Como Joga 1win Au Bénin: Une Revue Complète De La Plateforme De Paris En Lign Sledování Titulu Casino Suprême: Kde Sledovat What is a Data Room? Как Стать Стримером Казино%3F Что для Этого Нужно%3 Best Game Software How to Design Engaging and Effective Educational Events Winline Делает Разницу! Букмекерская Контора Winline Онлайн Ставки На Спорт Making Corporate Travel Arrangements Business Virtual Data Room Stock Market Tips For Beginners What to Look for in a VDR Provider Why You Need a Secure Data Room Learning in the Digital Age How to Apply For Business Loans VDR and Document Management Performance Management and HR Outsourcing Modern Business Integration How to Choose the Right Board Portal Software for Your Company How to Choose a Data Storage Room Why Startups Use a Data Room for Investors The Best Web Tools for Designers Use Cases For Using VDR Documents Subsidy Programs and Financing Innovative Technologies for Audit What Is Real Estate Management? Investment and Funds Inspiring Teaching Books What Are the Benefits of a Virtual Data Room? Startups and Business Ideas How to Improve Virtual Board Communication The Lego Company History Investing in the Biotech Industry Financial Startup Basics Jogue Por Dinheiro Actual Em Cassino Onlin Virtual Communication Methods for Remote Leaders How to Choose the Best VDR Providers How Successful Online Businesses Succeed How Business Experts Fuel Innovation and Create Competitive Edge The IT World and Business Deal Making Software and How it Can Help Your Business Virtual Data Room Software Types of Steel Materials and Their Uses Board of Directors Software Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci What Is Logistics School? What Is the VDR for Acquisition? The Best Data Room Apps For Startups Best Practices for Creating an Effective Board Meeting Agenda How to Choose the Best Shareholders Online Platforms Ostdeutsche Biersorten Getting a Construction Management Degree How to Select an Online Data Room Provider Start Your Blog Without Investment What to Look for in a Board Room Provider Data Room Comparison – Which Data Room Is Right For Your Business? Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Rotating Events in Our Time How to Choose the Best Business Software Choosing an Online Payment Processor Due Diligence Software Virtual Data Room Providers for M&A Due Diligence The Best Online Data Room Benefits of a Due Diligence Data Room Best Practices for Data Rooms Types of Corporate Governance What Is Virtual Data Storage? Benefits of Document Distribution Software The Benefits of a Data Room for Startups

Investment

Apple appeal: Some traders are trying to make extra money off the tech giant

Some traders are looking to make even more money from the world’s biggest stock, even after Apple shares have surged nearly 12 percent in the past month.

While the prices of S&P 500 options have lingered around record lows, Apple options remain relatively well bid. This means traders collectively think Apple shares have a high probability of rising or falling, while the S&P 500 will remain stable.

In these market conditions, some see opportunity.

Stacey Gilbert, head of derivative strategy at Susquehanna, suggests a trade commonly called a “covered call” or an “overwrite,” which combines ownership of the stock with the sale of a call option.

A call gives its buyer the right to buy the underlying asset for a given price within a given time period; buying a call, then, is a bullish trade. By selling a call, one receives a fixed amount of money and is obliged to sell the stock for a certain price no matter how high it rises. Doing this on its own results in unlimited risk to the seller, since any stock or ETF can theoretically rise to infinity. But when a trader sells a call against a stock she already owns, the only added risk comes in the more abstract form of foregone gains — since the losses on the call will be offset by the gains on the stock.

Such a strategy is always on the table for an investor. But its attractiveness at any given time will be determined by the amount for which the call can be sold and by the stock’s perceived upside. And right now, both sides of the equation make the overwriting plan a good one, Gilbert argues.

“As everything else in the world is low volatility, Apple isn’t as low as the rest of the world — so you can actually get some premium for those calls,” Gilbert said Tuesday on CNBC’s “Trading Nation.”

Further, the next iPhone is expected to be released in September, and “it isn’t unusual to have a buy-the-rumor-sell-the-news situation.”

“You can maintain your Apple position assuming it doesn’t rally significantly,” but the overwriting strategy will “offset [losses] if there is any short-term pullback here,” Gilbert concluded.

A pullback could indeed be in the cards, warns Boris Schlossberg of BK Asset Management.

“I think their growth strategy of betting so much on China is really going to backfire against them,” Schlossberg said on “Trading Nation.” Given growing competition from Google’s Android and other comers, “I think there’s a tremendous amount of headwinds going forward, so I’m very, very leery of being long Apple at this point.”

MKM Partners derivatives strategist Jim Strugger can also get on board with the overwriting strategy. His research shows that not only are Apple options expensive compared to S&P 500 options, but that Apple options are more expensive now than they have been in the past.

“Relative to itself [in the past], yes, it’s a good time to overwrite AAPL,” Strugger wrote to CNBC on Wednesday. Still, he notes that options prices on Apple remain lower than those on stocks like Alibaba and Nvidia, making it less juicy “in terms of the premium that selling a covered call will generate.”

On Wednesday afternoon, October 175-strike calls on Apple are trading at about $1.55 per share. Traders selling those calls will get to keep that entire premium so long as Apple closes below $175 on Oct. 20.

Interestingly, even those bullish on options are using high options prices to their advantage. On Tuesday, Todd Gordon of TradingAnalysis.com sold put spreads in order to speculate on upside.

Source: Investment Cnbc
Apple appeal: Some traders are trying to make extra money off the tech giant

Comments are closed.