How to bite Apple

Well, Apple is behaving exactly as what I have expected for it: it came down from the recent high of over $500 to touch $450 in the past few days. As I said, anywhere between $440-460 is a good buy for Apple. We got it and I think it is the time to bite Apple!

There are many ways to bite Apple and it is tasty anyway. But at the high level, there are basically two ways to bite it:

• Buy Apple and hold it for your retirement with dividend reinvestment. Apple is fundamentally cheap with a great value and you don't need to worry about its capability to pay your dividend. The dividend will only get bigger and bigger.  This is a worry free trade: you buy it and then simply forget it. Ten years from now, suddenly you will find you have a created a big amount of money for your retirement, which will become bigger and bigger as long as you hold it. The day to day volatility of its prices is simply a noise. Just ignore!! I have already had Apple in my retirement portfolio and I just add more.
• The other way to bite Apple requires a bit technical skills. If you know how to trade with options, there is a great way to buy Apple with a super discount and unlimited upside. If you sell a LEAP Apple put option in combination with buying a LEAP call option, you will basically create an Apple position equivalent to as low as below $400. Yes, you heard me right. I can easily shoot for Apple at around $380 that I'll not loose a penny unless it plunges over $80 from the current level. And I can enjoy all the upside potential, regardless how high it wants to go. I'm excited about this trade, especially with this great value play. You don't often get this kind of opportunity.