Put Selling Biweekly Strategy In Apple Stock Could Return 30% Plus

Once in a while a stock comes along that lends itself to a unique Put Selling opportunity. Apple Stock was my choice for my Shark Options Trading Strategy all of 2012. This year things may have changed for Apple Stock.

Apple Stock Earnings

Earnings are to be released January 23 and estimates from analysts range from a low of $11.53 to a high of $15.50 with the mean average at $13.34. Last year for the first quarter Apple Stock earned $13.87 per share. If earnings come in less than last year for the same quarter it may be difficult for Apple Stock to move back up. With the book value at $125.18 and earnings for the past year at $44.16, the PE on the stock is at 11.8 times. The dividend is $10.60 and offers 2.04% annual yield. While all these figures are excellent they are not overwhelming. A lot of articles being written talk about the terrific “future” of Apple stock and their products. But this field is becoming very crowded and Samsung is definitely eroding Apple’s market share. These are all warnings signs to be cautious of, which is part of the reason I think this short-term trading strategy may be of benefit.

Put Selling Biweekly

Apple Stock certainly looks like it is working hard at putting in a bottom. Apple Stock has trended sideways now for a month and while my Shark Option Trading Strategy is not giving out any clues yet as to what direction Apple Stock is headed in, I think this biweekly Put Selling strategy offers a lot of potential.

By combining available capital with margin and then Put Selling biweekly options an investor may generate quite the return while at the same time having decent protection against a further decline in Apple Stock.

Put Selling Advantages

Put Selling biweekly against Apple Stock has some significant advantages including the short time capital is at risk and the flexibility to keep adjusting this trade should Apple Stock fall below $500.00 and the investor needs to roll down or buy back his naked puts. Volatility is high enough in Apple Stock to create these excellent put premiums.

There is a lot to like with this Put Selling trade based on the biweekly options. It’s not complicated and it has a decent balance between risk and reward.

While the future is never guaranteed by the past and as everyone knows in investing you always trade at your own risk because there is no guarantees with risky assets this two-week strategy does attempt to address the three most important aspects of investing – profit, protection and flexibility.

Apple remains an incredibly powerful company within the consumer electronics market and has not only been the leader but also the innovator that so many other companies have been unable to clone.  That said, great companies have come and gone before and safety I believe is key when it comes to risking hard-earned capital.

This will be an ongoing strategy that I will be doing until the strategy no longer provides the environment for success. This is a FullyInformed Members Strategy Article which can be directly accessed through this link or Members can login here. Non-members can join here.

For FullyInformed Members interested in this strategy who want to follow along I suggest either joining my twitter feed or the email updates to stay current with changes and adjustments.


Print Friendly