DTT Buzz

Apple's (NASDAQ: AAPL) big announcement takes place tomorrow. Will it be the release of a new iPhone? New models of iPods? New and improved iBooks/iMacs? This blogger has an opinion, but I'm not sure. That said, I have taken a mental position in regard to the stock price reaction.

My personal opinion is a bit contrarian in relation to what I've heard others saying. I feel there is a lot of speculative buying priced into the stock. These speculators will take profits and run prior to or just after the announcement, likely regardless of how positive the news may be. In my opinion, shares of AAPL will fall, unless of course AAPL comes out and announces something that's so positive for the companies growth potential that it can't be denied. After all, it's no secret that the street eats up growth!

I like out of the money puts here...looking at Sep 67.50's and Sep 70's. I have some specualtive capital that I would like to put to work, so I may be buying some of the puts I just mentioned. If you're reading this and thinking to yourself that this seems like a logical play, let me remind you that this is an extremely risky trade. DO NOT PLACE THIS TRADE UNLESS YOU ARE USING MONEY YOU CAN ABSOLUTELY AFFORD TO LOSE!!! As stated in a recent AAPL article that I wrote, I am overall bullish on this stock, but I think this is an opportunity to make some quick cash. In the event I decide to buy puts, I will exit the trade before the end of tomorrow's trading session.

Bottom Line: I think the street will take a bite out of AAPL's stock price after tomorrows announcement.

Happy Trading,






Nick Fenton
Sr. Analyst, DaytradeTeam

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