Learn the trade here. Make it on tradeMONSTER

Options Trading News

September 13, 2012  Thu 8:13 AM CT

AAPL: SEE CHART GET CHAIN FIND STRATEGIES
Oh, for heaven's sake, stop trading Apple and start owning it. People are trading the stock as if it were a movie and sending it up and down based on the latest review.

Look, I get the importance of the iPhone to Apple: It accounts for 70 percent of the company's earnings. I understand that some people are always going to be disappointed that it doesn't have this feature or that gizmo.

But the important thing is that so many people have hung back and waited for this new iteration as a way to take advantage of the new rollout of faster 4G networks that it might just sell well anyway. And given that Sprint is ready to go to war with Verizon and AT&T to give it to you, the subsidies will be heavy and the demand strong.

I think this Apple parlor game is repulsive. You are playing trends that can't be played--basically what others with very little capital at work might do or not do with every penny trade in any direction. You are gaming the psychology of the moment and not the earnings of the era.

TheStreet.com logoHere's what you should be owning, not trading: an earnings stream growing at 15 percent that you are getting for 14x earnings, which is what the average stock is selling for in the S&P 500.

Is this an average stock with average growth? No, it is among the greatest wealth creators in the world with a vastly superior growth-and-balance sheet.

Do you want to flit in and out of Apple to catch the latest review or day's sale? Or do you want to own a stock that's just too cheap not be owned, one that money managers all over the country have to own to show that they are in the game or to beat the game going into the fourth quarter.

I think owning it has it all over trading it. Nothing I heard yesterday changes my mind.

Disclosure: Cramer's charitable trust is long AAPL.
Share this article with your friends


Related Stories

AAPL

Cramer: IBM deal is smart for Apple

July 17, 2014

How big a deal is the new IBM alliance for Apple? Very. This is all about IT--meaning that the objections of the IT departments are finally being met from the ground up.

AAPL

Trader looks for more green in Apple

July 2, 2014

The electronics and computer giant is at its best level since coming off 52-weeks highs earlier this month, and a large trader is looking for shares to continue their recent run higher.

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER