As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Follow Up to Trade Alert - (AAPL) - Update
LONG the Apple (AAPL) May, 2015 $115-$120 deep in-the-money vertical call spread at $4.00
NOT A NEW TRADE
4-27-2015
expiration date: May 15, 2015
Portfolio weighting: 10%,
Number of Contracts = 26
Apple blew away even the most optimistic forecasts today, announcing earnings per share of $2.33, versus a consensus expectation of $2.16, and $1.75 last quarter.
As a result, the stock has gone ballistic in the aftermarket, and will open Tuesday at a new all time high.
The firm earned $13.6 billion in profits on $58 billion in gross profits, the largest quarterly profit in world history.
The company sold a staggering 61.2 million iPhone during the three-month period, 4 million more than expected. Insignificant iPad sales dropped from 13.9 to 12.6 million units. MacBook?s were in line at 4.6 million units.
No mention was made whatsoever of problems with a strong dollar.
The company now sits on an unbelievable $194 billion in cash, the equivalent of the GDP of a medium sized country. Most importantly, Apple is expanding its share buy back program to $200 billion.
Wow!
This means we will be close to taking in 90% of the maximum potential profit on our long position in the Apple (AAPL) May, 2015 $115-$120 deep in-the-money vertical call spread at the opening tomorrow morning.
A $4.90 print of on the spread would give us a 22.5% profit on the position in less than two weeks. If I don?t take a profit, it will be only to squeeze out the last dregs of the position, with only 13 trading days left until expiration.
Not bad.
Fortunately, I was pretty aggressive with this position, using strikes that were close to the money, as I was certain that Apple would outpace all expectations with this earnings report.
On to the next Trade Alert. Tally ho!
