Tuesday, April 24, 2012

$AAPL mkt is bullish on the stock despite all the negative news coverage

$AAPL mkt is bullish on the stock despite all the negative news coverage. Here is proof.
Below is a chart showing aapl options action.
*** the top 2 squares show you the open interest in aapl call (left) and puts (right).
1) We buy calls when we are bullish on a stock believing its price will go up therefore our option price will also go up.
2)We buy puts when we are bearish on the stock betting it will go down over time so our put option price will go up in price.
CONCLUSION: putting 1) and 2) together and we get that more investors are $AAPL BULLISH (own calls) than bearish (own puts)!

*** Furthermore, the lower 2 boxes show us today's call option volumes: as of 10:25am est
total call volume (bullish bet or protecting short positions) = 137,743
total put volume (bearish bet or buying protection) = 79,214
that ratio is 1.74 so we have almost twice as much volume betting AAPL will go up in price from here.

If you want details look at the box colors on the lower 2 squares; they show you the timeline of the positions (red=May, orange=Jun, Yel=Jul, etc). If you notice that the longer you go in time the stronger bullish conviction.
Any way you slice it, the investors are bullish aapl!!!

I am not an appl fanatic (ask anyone I know) but selling aapl to buy ATT (this am) or anytying else for that matter makes no sense to me. If I can't take a chance on a stock like aapl that sells every nut and bolt it makes I should pack it in and stick my money in FDIC insured account paying me 0.25%!




MY TWEETS AND POSTS ARE REAL TRADES WITH REAL PROFITS AND REAL LOSSES. NO PAPER TRADING HERE! I HAVE A FEW INTERESTING TRADES POSTED.

FOLLOW ME ON TWITTER OR STOCKTWITS @racernic

As with any trade there are risks but in this case the I am very comfortable with the dollars at risk. I always try to know and manage my risk; I ask 'what will I lose if the crap hit the fan in the worst possible way.' If I know the answer to this and am ok with it then I should be ok.

THIS IS NOT A RECOMMENDATION OF ANY KIND. I ONLY INVEST MONEY I CAN AFFORD TO LOSE.

$AAPL $AMZN $bidu $SPX $NDX $RUT $C $GS $wynn $SPY $GOOG