OptionsHouse

Options Trading News

August 14, 2013  Wed 8:11 AM CT

AAPL: SEE CHART GET CHAIN FIND STRATEGIES
Raising price target, Apple: going to $525 from $450.
Raising price target, Apple: moving to $550 from $475.
Raising price target, Apple: up to $550 from $500.

Yep, that's what has to happen now that Apple has come back from the oblivion of that last "bad" quarter and now that Carl Icahn has taken a stake and urged CEO Tim Cook to issue a larger stock buyback.

There are important things happening here.

First, the fact is that Tim Cook seems receptive to Icahn--or at least Icahn said Cook is receptive. Hey, that matters. Cook didn't seem to be receptive at all to David Einhorn when he saber-rattled.

TheStreet.com logoSecond, I have never ever seen expectations so low for a new phone like the iPhone coming out in September--in time for the holidays, I might add.

Third, yesterday morning we were treated to Oracle's Larry Ellison trashing the post-Jobs Apple. That's a little ridiculous given how poorly Oracle is performing, but I like that Ellison pronounced the company pretty much dead as a doornail.

Finally, and most important, analysts crushed their expectations and their price targets en masse in the five months since the bottom. But the stock has taken off so fast that they have no choice but to redo their price targets if only because they have now been overrun by the stock on the upside, just as they were on the downside.

That's why I don't' think this move is over. The analysts have too much work to do, on the upside ... raising targets!

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


OptionsHouse

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »