01-17-2013, 05:11 PM
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Living a dream!
Location: So.Cal
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Join Date: Apr 2005
Posts: 2,579
Mein Auto: 2011 535i
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Here's one perspective on the current AAPL situation
Compelling piece by Joe Springer on Apple's stock price, from back in November:
Quote:
So here is our logic to being patient. It is threefold:
Apple had an enormous amount of call options speculation related to its Summer surge
A huge share of this was calls with a strike of around the current price of $550 and higher that expire January 19 2013
The institutional money managers that wrote those call options and bought common stock to cover will make a lot of money if a) those options expire worthless, and then b) Apple runs after that expiration date
Billions of dollars at stake if AAPL stays near or under $500 a share until January 19 and then makes a run after that. No tinfoil hat required to see the motivation here. (Via Loren Brichter.)
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