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Tuesday, November 15, 2005

AAPL, the energizer bunny

How to view the entire chart:


1. Try clicking on the name of the most recent article in the column on the right. This will remove the "Archives" list.
2. Try right click on the chart itself and open it on a separate window.


I am sorry that I cannot always make the chart small enough to fit neatly on the left column. I want you to be able to see the details I want to point out.


I Hope this helps,


Juan

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The most recent analysis of AAPL, long term, is now turning into an impulse wave 3. That means to me that AAPL is likely to reach $80, short term, or even higher.



Short term, AAPL has completed wave 2 of wave III, and it is now in full speed ahead.

7 comments:

Anonymous said...

Thanks! AAPL @ 80 short-term seems about right to me. :) Love it!

Anonymous said...

Juan,
The IV of AAPL is now at the high side. Is it time for adjustment on the PCCRC trade ? BTW, when did you roll your shorts Nov to Dec ?

Juan Sarmiento said...

HK, check this out!

http://www.pathometrix.com/Movies/AAPL.mov

This is my answer to you. Please comment on this approach to answering questions.

Anonymous said...

Wow! That's so cool, Juan! It's a wonderful teaching method. I still don't undertand all that but I can listen to it till I do. :)

Anonymous said...

Wow! That's so cool, Juan! It's a wonderful teaching method. I still don't undertand all that but I can listen to it till I do. :)

Anonymous said...

Juan,
Thanks for your answer. Very professional. I like it. Definitely clearer and better than written reply and easier to follow.

If the IV of Dec. options were to spike to 60, will the whole position decrease in value ?

The IV of AAPL tends to increase during earning month; the next being January. Will closing the Dec. options at Dec. expiration and leaving the Jan. legs to close later after IV rises in January be an advantage ?

Juan Sarmiento said...

Hi everyone.

Thanks for the comments. I've been thinking of setting up my own web site to do this kind of things. However, it is going to cost money. So we will see....

The options spike will make your options more valuable. Look at VEGA. The larger the IV the larger the Vega. A volatility spike to 60 tends to be very temporary. However, the Jan calls and puts will, very likely, increase in volatility near Dec. The Dec. options will DECREASE in volatility, as we approach expiration. So hold on, it is no yet time to leave this trade.

I hope this makes it clear.

EWI