Buy Alert: May 2, 2016

| May 2, 2016

Buy Alert:  May 2, 2016

 

Trade Details

Buy Apple (AAPL) May 20th 95.50 Calls for $1.10 or better (lower)

 

Why?

This is basically a no-brainer trade right now.  It’s not that there’s a guarantee that the stock is going to go up over the next three weeks.  However, AAPL’s earnings sell off is very extreme for a company that’s basically the victim of its own success.  At some point, sales growth was bound to stall.  It doesn’t mean the company is done growing.  In addition, the stock carries a ludicrous P/E of around 10x.

We’re going to buy May calls.  Conservative investors can take profits at $97.50.  Aggressive investors can hold up to $100.  For risk control, conservative traders should exit at $90, while more aggressive traders can hold down to $88.

 

 Recent Activity

Apple

 

Category: OTW Buy Alerts