Here Comes Apple
Banks take the spotlight today, but in another hour or so they will give way to Apple (AAPL). Apple can move markets. I don't know a single person who expects Apple to miss today. Yesterday I second-guessed everyone's expectations that International Business Machines (IBM) would sell off, and that proved to be a mistake, so I am going to try to avoid repeating that one today.
I am approaching Apple in a similar manner to Google (GOOG) rather than IBM, since one worked and one did not. First, everyone loves the lottery ticket, and here I would be on the October 455-465 call spread around $0.80. It isn't a great probability in that it needs an 8% move to get to break even, although with a few days until expiration, if Apple makes it into the upper $440s, I would expect this one to break even. However, the 11.5 reward-to-risk ratio on a 10% move, which is possible, is appealing. I will only have a small handful of these....248 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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