Gersh's Option trades Message Board

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To: Mark Johnson who wrote (613)	7/24/2007 12:10:06 AM
From: Mark Johnson	Read Replies (1) of 652

One option short I really like right now I AAPL before the earnings announcement. The options are indicating either a significant upside surprise in earnings or most likely a positive outlook for the company. The reality is that AAPL is strong, has strong products and it will continue to remain strong. Regardless, I think the positives are already reflected in the stock. Shares have run from about $70 a share a year ago and recently hit $145 per share. What really looks tempting is shorting the August $195 and $200 calls at around 50 cents a contract. It is possible (maybe the reality is) there may be a $20 to $25 pop to the up side after earnings. If this happens I think the stock will be over extended in the short term and see profit taking. Also, shorting the 115 and 120 calls for 45 cents and 85 cents respectively look decent. In a stock market nothing is guaranteed, but AAPL options, in my (of course) opinion, appear to be free money given the high premiums in the options.