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Sunday, October 21, 2012

Ready to bite APPLE

I was tied up with a business trip in Switzerland last week and did not have much time to read and watch. So just a quick note on a stock I have been watching closely for some time. It is Apple (AAPL), a stock I like very much but haven't got into it.

I guess I don't need to say too much how successful Apple is as a company. Everyone knows it and most people admire its products. It is changing the world in many aspects. However, its stock has dropped by about 15% in the past 2 weeks or so, from its top at $705. Why? It has gone ahead of itself too far, too fast. Whenever people got too excited about something in investment, the direction will reverse. No difference for Apple! After shedding 15% of its weight, Apple becomes more attractive from the long-term perspective. I'm still a bit hesitant though, due to the overall market condition. Currently Apple is trading hands at about $610. I think and hope it will come down further to below $600. If that happens, I may start to pick up Apple's shares. By using the naked puts technique, I can also sharply bring down my cost and can buy Apple shares for below $500.

1 comment:

  1. I am following your guide and waiting. Hopefully APPL will be around $600 soon and then I can buy in some as you suggested.

    I bought some Yahoo as you suggested.

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