Started By
Message

re: Covered calls on AAPL?

Posted on 5/4/16 at 6:24 am to
Posted by Ole War Skule
North Shore
Member since Sep 2003
3409 posts
Posted on 5/4/16 at 6:24 am to
Damn you all to hell for hijacking my thread!
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10229 posts
Posted on 5/4/16 at 6:54 am to
Covered calls are a pretty conservative way to partially insure/risk manage against the down side.

There are no holes to be shot in your strategy as you picked a strike price, and upside price point you indicated you'd be comfortable with.

Back out cost in, cost out and cost to exercise when you figure your yield.
Posted by barry
Location, Location, Location
Member since Aug 2006
50336 posts
Posted on 5/4/16 at 7:57 am to
quote:

Buybacks are stupid I dont know why everyone wants a buyback just to artificially boost share price, google isnt buying stock


Please explain what's "artificial" about buy backs and the way they raise share prices?
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 5/4/16 at 8:05 am to
They're manipulating the price by taking out shares. Google doesnt do it, what other big tech company does it? Buybacks are for companies that have nothing better to do with the cash your mcdonalds,procter gambler,phillip morris, etc. Companies that are supposed to be at the front line of innovation with a gazillion opportunities around them like apple should not be doing a dividend and a buyback. Take that cash and start investing in all these tech fields that will dominate the future: robots,electric cars, hell even tvs at this point. The point is nobody knows what the hell apple is doing bc there is no mention of it, but there are infinite possibilities when you have that kinda cash.

For starters, I have a fitbit blaze and it utterly destroys my fiancees apple watch. If im apple I begin by making apple watch 2 a fitbit killer, its really not that hard, the fitness side of the apple watch is complete junk right now.
Posted by TigerDeBaiter
Member since Dec 2010
10249 posts
Posted on 5/4/16 at 8:31 am to
Apple Has Wasted Billions on Buybacks

quote:

The supposed advantages of buybacks are basic: They return money to investors, tax-free. When a company buys its own stock, it reduces the overall number of shares outstanding. That raises earnings-per-share, and all other things being equal, the stock price, making shareholders richer. Put simply, the folks who own Apple get a bigger share of the Apple pie, courtesy of the constantly shrinking count of shares outstanding.


quote:

But buybacks fail to enrich investors if management overpays for their shares. Over the past two years, companies have been plowing a record portion of their cash flows into repurchases, only to see their stocks keep swooning. So they’re failing on two levels. First, the repurchases aren’t raising the share price as intended. Second, their timing was terrible. Judging from the frothy prices when they bought, it’s more likely that their shares were a sell, not a bargain.

Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 5/4/16 at 10:02 am to
quote:

* I think the stock will be flat over next few months (90-100)
* If it goes to 100 and my shares are called, I don't care, I'll be happy with the profit on the calls and stock. Can always buy more shares if I like.
* I'm equally happy to keep the shares for the long term.
* A little downside protection if it drops another few dollars

Please shoot holes in the idea.


Not really any holes. Covered calls are a conservative income generating strategy. Seems to match your objective.
Posted by barry
Location, Location, Location
Member since Aug 2006
50336 posts
Posted on 5/4/16 at 2:53 pm to
Its not manipulating shares, its adding actual value to shareholders.

quote:

Google doesnt do it, what other big tech company does it? Buybacks are for companies that have nothing better to do with the cash your mcdonalds,procter gambler,phillip morris


Apple has been around a lot longer than google and are flush with cash. Apple has more cash than their are good ideas. They shouldn't "innovate" just for the sake of innovating. Apple knows what it does well and its doesn't put its hand in a million different things.
Posted by rocket31
Member since Jan 2008
41819 posts
Posted on 5/4/16 at 3:03 pm to
quote:

Apple knows what it does well and its doesn't put its hand in a million different things.
Posted by barry
Location, Location, Location
Member since Aug 2006
50336 posts
Posted on 5/4/16 at 5:51 pm to
Would you like to argue that they don't know what they are doing or that they have a very limited number of products for the revenue?
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10229 posts
Posted on 5/4/16 at 6:07 pm to
Add value perhaps, but a lot of this has been going on to play games with eps, and cash flow per share.
Posted by rocket31
Member since Jan 2008
41819 posts
Posted on 5/7/16 at 2:34 pm to
Just checking in to laugh at AAPL.
Posted by Jag_Warrior
Virginia
Member since May 2015
4071 posts
Posted on 5/7/16 at 3:19 pm to
You bought puts or sold some naked calls?
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 5/7/16 at 4:43 pm to
whats their to laugh about? not only do they dominate currently, have you read about swift? I bet you wont be laughing a couple years when swift is the dominant coding language the world over. Its ridiculous how sticky the apple ecosystem is they can and will do many more great things in our lifetime, only a fool laughs at short term price moves.
This post was edited on 5/7/16 at 4:45 pm
Posted by kaaj24
Dallas
Member since Jan 2010
596 posts
Posted on 5/7/16 at 5:05 pm to
Stock repurchases aren't necessarily stupid.

However, it is unclear if they are an efficient use of capital in every situation. They are approved by BoD.

EPS growth is a significant driver of share price. Companies may have bonuses tied to EPS achievement.
Posted by dabigfella
Member since Mar 2016
6687 posts
Posted on 5/7/16 at 8:11 pm to
if you're a long term shareholder with a vision, im thrilled apple is crumbling and giving the co a chance to gobble up shares down here, if apple keeps minting cash, which is probable, how much of the co will they buyback in 10 years? it will be a big chunk.
Posted by LSU1018
Baton Rouge
Member since Feb 2007
7215 posts
Posted on 5/12/16 at 9:38 am to
I bought some shares today at 90.67. Their RSI is in the 20s. I would be fine holding this long term but I just feel like this may be an easy opportunity to make a short term gain.
first pageprev pagePage 2 of 2Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram