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Sunday, July 10, 2011

Apple stock Technical Analysis prediction 11 july 2011

Apple stock Technical Analysis prediction 11 july 2011 : Share of Apple Inc. (AAPL) is holding over $360 on Friday and I took my some long term buy under $320.Apple will now have resistance up at $361 & $365.If Apple stock ever falls below $300 again,I will buy more in stock below $320 for long term.If Apple stock ever falls below $300 again.I feel Apple will hit $400 sometime in 2011.Apple will again be a hot technology stock in 2011.
Apple (AAPL)
Apple continues to deliver positive news to the investing community. On June 6th, Apple delivered an iCloud presentation. AAPL released details on its cloud computing services. The platform will work on the iPhone, iPad, iPod Touch and personal computers. The iClould service will wirelessly keep the user's content and push it out to all user's devices. The service will impact Photo Stream and iTunes, backup services and storage. The service will be available in the upcoming fall along with the iOS 5.

I am comfortable extending my buy-write trade extending into September. I am assuming the iCloud service, iOS 5 release and college back-in-session will add support to the stock price.

Now that the stock price has increased $27 to $360, I am reducing my loss tolerance to a flat position. If the buy-write goes below my $32,748 break-even point, I will close out the position.

My current Apple trade contains the following positions, terms, stop loss:

1. Continue to hold the 100-Apple shares at a cost basis of $33,123.
2. Roll out of my covered call position into a higher strike price, and September expiration.
3. Buy back the short Aug 2011 $350 Covered Call, symbol AAPL110820C00350000 for $1,850.
4. Sell one covered call; AAPL Sep 2011 360.000 call, symbol AAPL110917C00360000 for $1,610.
5. My current break-even point is $32,748.
6. My stop loss on the trade is $32,748. I have a profit on the common shares. I have adjusted the covered call price up $5 to $360 from $355, and extended the option expiration out one-month.
My new net position offers a higher simple return of 9.93%. Although the covered call has been extended into September, I am confident of the Apple's fundamentals heading into the fall. The stock has moved favorably from my initial purchase.
I am comfortable with the volatility due to Apple's balance sheet and continued industry leadership. I typically will consider an OTM protective put, but I am comfortable with the position as it currently stands.
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