Week 21 of 2008 trading is finished.
Take a look how AppleOption has performed against the market this year.

S&P 500 -4.27%
Dow Jones -3.86%
NASDAQ -5.64%
Apple -10.0%

Early in the week, AppleOption wrote Gas & Crude Ready to Explode! While we were referring to the eventual oil speculation trading bubble burst… as real oil demand would price a barrel at $70 and not the $135 record for the week. This recent surge in oil caused a market sell off this week. Despite the strong sell off in Apple, the AppleOption portfolio’s didn’t give up much ground. Meanwhile, the Index Condor Portfolio will be closed as we turn our focus on to the AppleOption Auto Trade Portfolio (ATP).

AppleOption Short-Term Portfolio (STP)
      Started the year with $10,000
      Current portfolio value $18,916.46 (after commission/fees)
      Year-to-Date Gain 89.1%

AppleOption Long-Term Portfolio (LTP)
      Started the year with $25,000
      Current portfolio value $28,259.94 (after commission/fees)
      Year-to-Date Gain 13.0%

Index Condor Portfolio
      Started the year with $10,000
      Current portfolio value $8,847.07 (after commission/fees)
      Year-to-Date Loss -11.5%

If you are not yet a member of AppleOption, sign-up today and discover how we trade. We’ll teach you by showing all of our portfolio trades in real-time. Join AppleOption Now!

S&P 500 5-day

Dow Jones 5-day

NASDAQ 5-day

Apple 5-day

S&P 500 3-month

Dow Jones 3-month

NASDAQ 3-month

Apple 3-month

     
AppleOption Short-Term Portfolio

From the beginning of the week, the STP noticed a bearish turn in the market which Apple attempted to ignore. The portfolio took some profits and Adjusted Calls as we predicted a test of $175 for the week. It’s too bad we were not more bearish! But during the panic, the STP issued a trade alert, purchasing Long Calls at a discount. We ended the week informing subscribers of the pre-WWDC Gift and continued to take advantage of the decline. At the end of the week the STP maintained most of it’s value and has 50% still in cash awaiting any additional weakness!

AppleOption Long-Term Portfolio

The LTP made two trades this week. We started off by Taking $2,000 of Profit off the table. The goal was to utilize these funds to help reposition our long calls during a sell-off. After Apple plummeted to $172 and found support, the LTP issued a GTC Roll which filled on Thursday. Despite the major fluctuation in share price this week $172 to $190, Apple only finished the week lower by $4 at $181.17. The LTP held onto it’s value and gained advantage on our callers.

Index Condor Portfolio

Due to subscriber request, the AppleOption will begin to offer Auto-Trading. We have partnered with ThinkorSwim who will be the broker for individual traders that wish to autotrade AppleOption portfolios. Initially we will start with a dedicated AppleOption Auto Trade Portfolio (ATP). As the system becomes established, AppleOption will extend autotrading capabilities to the STP and LTP. Thus, we will close the Index Condor Portfolio as our trading will be refocused. Many traders are excited to utilize the AppleOption trading style and have expressed great interest in autotrading.

     
Up-Coming Earning Reports: for a full listing of companies

Monday May 26th
      MEMORIAL DAY - Markets Closed
Tuesday May 27th
      Vodafone - VOD
Wednesday May 28th
      American Eagle - AEO
      TiVo - TIVO
Thursday May 29th
      Costco - COST
      Sears Hldg - SHLD
      Dell - DELL
Friday May 30th
      nothing major

Apple News:

Macrumors.com posts details of the 3G iPhone speeds over AT&T’s HSPA network. HSPA is the protocol utilized to transfer data reportedly at “1.4 Mbps (~175KB/s) download and 800Kbps (100KB/s) upload.” It is thought that by Chrsitmas a faster version, called Evolved HSPA will provide “download speeds of 42 Mbps (~5250KB/s).”

Goldman Sachs added Apple to its coveted Conviction Buy List and upgraded its price target to $220 per share. Analyst David Bailey wrote, “Apple will almost double its available subscriber base in calendar 2008 vs. 2007, with 100 percent of that growth coming from outside of the US as Apple signs up carriers in more than 40 new countries in Europe, Asia, the Middle East, and Africa.”

Apple Analyst Ratings:

The Index Condor Portfolio has two current trades open. If the market experiences additional weakness, we will utilize this period to reposition.

Please Login or Register to read the rest of this content.

Week 20 of 2008 trading is finished.
Take a look how AppleOption has performed against the market this year.

S&P 500 -2.3%
Dow Jones -1.13%
NASDAQ -2.46%
Apple -4.22%

AppleOption Short-Term Portfolio (STP)
      Started the year with $10,000
      Current portfolio value $19,498.51 (after commission/fees)
      Year-to-Date Gain 94.9%

AppleOption Long-Term Portfolio (LTP)
      Started the year with $25,000
      Current portfolio value $29,090.62 (after commission/fees)
      Year-to-Date Gain 16.3%

Index Condor Portfolio
      Started the year with $10,000
      Current portfolio value $10,114.97 (after commission/fees)
      Year-to-Date Gain 1.1%

If you are not yet a member of AppleOption, sign-up today and discover how we trade. We’ll teach you by showing all of our portfolio trades in real-time. Join AppleOption Now!

S&P 500 5-day

Dow Jones 5-day

NASDAQ 5-day

Apple 5-day

S&P 500 3-month

Dow Jones 3-month

NASDAQ 3-month

Apple 3-month

     
AppleOption Short-Term Portfolio

The STP has had a fantastic week! We gained $2,450 over the last week to finish just over 19K, up 94.9%. We started the week by selling premium. The portfolio then locked in $5,321 of Profit and removed significant money from the market waiting for a pullback. Apple then had a great retrace that allowed the STP to Buy on a Dip. In preparation for option expiration, we did some final repositioning utilizing a Backspread Ratio. With only a few hours before expiration, the STP then Collected $645 of Premium from our short calls. We finished the week in a strong bullish position while holding 50% cash after nearly doubling the portfolio’s 10k initial capital for the year.

AppleOption Long-Term Portfolio

As usual, the LTP does not need frequent trading to profit. The portfolio only made one trade this week as May short Callers were Rolled into June. Despite minimal trading the portfolio was still able to gain $793 for the week.

Index Condor Portfolio

The Index Condor Portfolio, as described in last week’s review, is beginning to employ additional option trading styles besides the standard iron condor trades. We started the week with this Trade Alert. As always, when entering new trades it often takes a few weeks for the portfolio to stabilize. The timing of our entry was nearly perfect, though we lost $238 for the week.

     
Up-Coming Earning Reports: for a full listing of companies

Monday May 19th
      Lowe’s - LOW
Tuesday May 20th
      Home Depot - HD
      Medtronic - MDT
      Target - TGT
Wednesday May 21st
      Dillard’s - DDS
Thursday May 22nd
      Barnes & Noble - BKS
      Gamestop - GME
      Gap Inc - GPS
Friday May 23rd
      nothing major

Apple News:

Macrumors.com shares pictures of Mobile Location-Based Software for the iPhone. The example shows that users in Starbucks could order their morning coffee and later be alerted when the order is complete. All without standing in line!

For the first time in history, Apple’s WorldWide Developer’s Conference (WWDC) has sold out! The WWDC08 will run from June 9-13 in San Francisco. The Keynote address will be held on Monday June 9th at 10:00 AM PST. “A team of Apple executives, lead by CEO Steve Jobs” will deliver the presentation.

The iPhone’s market reach quadruples after France Telecom’s Orange announced they will introduce the iPhone to 10 more countries. The general belief is that the new 3G iPhone will be announced on June 9th.

The XLF is the S&P Financial Sector ETF (exchange traded fund).

Fund Profile: (from Yahoo Finance)

“The investment includes companies from the following industries: banks, diversified financials, insurance and real estate. The fund will normally invest at least 95% of its total assets in common stocks that comprise the relevant Select Sector Index. This fund has adopted a policy that requires it to provide shareholders with at least 60 days notice prior to any significant material change in its policy or its underlying index. It is nondiversified.”

Year-to-date performance is down -10.32%. It is also down from the 52-week high of $38.15. The financial sector has taken a big hit, and this years low for the XLF was $22.29. While in the short term the fund might drift lower, AppleOption has a price target of $32 by the end of the year. Just last week we were trading above $27.50.

Chart Examination. The 5-day shows major consolidation to the $26 strike. In fact there is a major support level at $25.82 and then again at $24.75. On the 3-month chart we see the 50-MA support at $25.71, while both the 5-EMA and 20-EMA sit at $26.40. We feel the timing is good to buy into the XLF.

Please Login or Register to read the rest of this content.