This is the story of how badly I have traded this stock. First, let me say I own just about every piece of apple equipment out there. And every time I go to the apple store, I watch in amazement of how many people are there at all times. And for some reason they always seem so happy. Anyway, on to my trades...
1. Around the march stock index lows, I purchased the stock, I rarely buy stock, at around $90 per share. I realized a gain a few weeks later for around $110. Nice trade, nothing wrong with taking profit, right?
Looks like bonds will retest there highs again. I digress!
2. I left the stock alone for awhile watching it climb daily. Ahead of earnings last quarter, I noticed aapl was trading in oversold territory and had an outside down day with heavy volume. So I put on an vertical call spread, selling 175s and buying to 180s for protection. I haven't looked up my trades so these prices are off the top of my head. So earnings come out, and I cover my spread for a realized loss of most of the spread. crap. I felt earnings were so good I probably wont see any love on this trade, so I puked.
3. Well to make a long story short, I basically made the same trade again this time around.
And, finally as with the market apple has faltered as well. They traded above 200, where it felt like they will march on forever, and now sitting vulnerably at 194. The market is a cruel mechanism that will torture you in ways you didnt think possible. O well learn from the mistakes and move on. My mistake was that this stock was in a very strong uptrend, and ignored my what fundamentally made sense because I exited my initial long early. I took low probability trades to subconsciously make up for the fact that I didnt realize the possible gains on the long side.
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