Trade Alert – (AAPL) September 6, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

Trade Alert – (AAPL)

Sell the (AAPL) September, 2012 $550-$600 Call Spread at $49.65 or best

Closing Trade

9-6-2012

expiration date: 9-21-2012

Portfolio weighting: 25%

($25,000/100/$49.65) = 5 Contracts

We have taken 89% of the potential profit from this trade. Apple shares have moved up a healthy $52 since we laid on this position three weeks ago. The iPhone 5 announcement came in September, as my sources told me. Past price action tells us that the actual day of the announcement, September 12 in this case, marks interim tops in the stock. So it’s time to take the money and run and use our major to more effective use in more profitable trades. Another alert is to follow shortly. We will revisit Apple on the next $50 dip.

Here are the specific trades you need to get out of this profitable position. These are just ballpark levels because prices are all over the map today, especially for the deep in the money calls with only a few days until expiration:

Sell 5 X (AAPL) September, 2012 $550 Calls at……………….………. $122.70
Buy to cover the short 5 X (AAPL) September, 2012 $600 calls a…..….-$73.05

Net Cost…………………………………………………………………. $49.65

Profit = $49.65 – $46.70 = $2.95

($2.95 X 100 X 5) = $1,475, or 1.48% for the notional $100,000 model portfolio.

This is the 17th profitable consecutive closing position for the Trade Alert Service.

Thanks One More Time Steve!

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