Hephaestos said:
did you think of looking for a cyclical trend to the apple share before you placed your long put? Just saying cause 3 years ago I did a study on the stock and there was a definite christmass effect on it... (and it was going up and up and I wanted to invest on it but had no money :x).
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No, it is just my oppinion. I think Apple relies heavily on very few products, but unlike Google or MS, people might stop buying / using these products pretty fast.
Windows is a synonym of PC OS. 90% market share speaks for itself. Same with Office as long as every job in the office requires knowledge about MS office, MS should be fine.
Google is the startpage for millions of PCs worldwide. When I do to university and open the browser, google pops up. There are alternatives to google, but people don't want to use it, they are just fine with the standard search engine.
Apple relies on iphone and ipod. This is something that can change really fast. People are not saying: I had a iPhone 3Gs and now I will get an iPhone 4, without even thinking about other devices. Ask Sony with the PS3 from PS2. And the current Apple shares are so damn high with such high expectations and it is only build up on 3-5 products (iPod, iPhone, iTunes, iPad mainly). This reminds me of the new market rush (.com bubble) 2000 / 2001. The iPad did not take the world by storm like the iPod or iPhone did. Apple and analysts surely hoped for something more successful (4.2 million sold in the past 3 months, that is just 700k more than the PS3 :D) It is profitable, but not enough to warrant the high price the stock is sitting on now and not enough to satisfy the out of control expectations for Apple in the future.
So I think about buying Puts on Apple.
This is just MY OPINION. That is the beauty of trading.