The Start of a New Era
How to trade Apple Inc. into tomorrow's earnings
I have an interesting statistic that has me more confident than ever that earnings will be Apple Inc.'s nail in the coffin. This will shut the casket on longs for a while and have them questioning getting long such easy obvious names. People are skewed into optimism in $AAPL as it sits as one of those sure things. Well a time comes when it's no longer so obvious. But one must always strategize for a margin of safety, so $AAPL must be played in 3 tiers. 1st tier short has been at $418 with the 2nd tier being split in two. 1st of that 2nd tier was added short today at $426. It could also be used to instead to buy your first put option in $AAPL for a great percentage gain possibility if we do get a huge gap down in $AAPL post earnings which I expect. If we happen to gap up I also predict that it won't be more than $15 making it pointless to hold long options or common stock. At that point the descent will start. If we gap lower post earnings it will be over $25, $40, or $75. But in the end $AAPL will fall more than $75 from these levels.
Previous $AAPL related articles that I have written.
Those links each have about 6 articles in which Apple is the main subject or a side subject. In summary I believed $AAPL was a sell on October 14th but didn't get bearish or think short until January of 2012. I believe $AAPL now has great risk/reward to the downside. Of course their will be bounces. But higher prices I have to doubt from here on forward.
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