AAPL’s recent run-up from a very oversold 92.00 to a giddy 114.53 demonstrated that the dirtballs who control the stock are as capable as any operators in the game. That represented a 25% mark-up in just five days for the most valuable stock in the world — not exactly chump change. My hunch is that DaBoyz were a tad over-ambitious and that the stock is going to come down hard when They’ve finished distributing it. Accordingly, I’ll recommend buying eight Oct 17 85 puts for 0.53, day order. My goal is to spread them off for a small credit against short options when the stock is falling. Do NOT pay up for the calls, since it’s hard to enough to make money on straight directional plays with options when you have bought them for fair value or less. ______ UPDATE (September 8, 7:46 a.m. EDT): Raise the bid to 0.62, day order. _______ UPDATE (September 9, 3:15 p.m. EDT): We bought the calls for 0.58 but were stopped out this morning on the opening for a loss of $10/contract, or $40 total. This hasn’t changed my negative opinion of the stock or the company, but we’ll have to be more selective if we attempt to get short again.
