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


Related Stories

AAPL

Cramer: Bevy of buyback benefits

February 12, 2015

Stocks just might be worth more than you think. Sometimes the CEOs know it, other times they don't. Take a look at two cases: Apple and General Motors.

AAPL

Cramer: Mr. Market says not so fast

January 29, 2015

People are thrown by this new world, where there is a level of volatility that makes too many investors uncomfortable. And the stench of Procter and Microsoft still hangs over the market.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »