AAPL – Apple Computer (Last:341.63)

Apple Computer (AAPL) price chart with targetsWe bought two February 310 puts yesterday for 2.85 when Apple opened on a gap to 344.49, just 12 cents from a well-advertised Hidden Pivot. Was this the last gasp of an intermediate-term rally that has seen the stock rise by $23?  We should know soon, but for now tie the puts to a break-even stop-loss, making it one-cancels-other with another order, good indefinitely, to short two February 300 puts for 2.85.  If filled, we will have legged into a theoretically riskless, vertical bear spread with profit potential of as much as $2000 if the stock falls hard.