Apple, ah, that company which makes the must have iPhone and Macbook. That company which keeps on confounding analysts by growing and growing (like Blackberry behemoth Research in Motion). So is there a way to play Apple by using Options? What about playing Apple by using Options listed on the KLSE? Seems there is. The picture below shows some Vital Statistics on Call Warrants listed on the KLSE - namely Google, Apple and Exxon-Mobil.
(Click to ENLARGE. Source: The Star, 22nd December 2007)
With a conversion price of US$171.50, requiring 1,200 warrants to convert to one mother share, and a last transacted price of RM0.09 (reference price of RM0.08), we come to a "hurdle" price of US$200 per Apple (APPL) share for the Call Warrant to be profitable. Apple traded at US$193. Here's a fact. Apple shares do tend to rise up in January before the MacWorld later that month. And seeing Research in Motion (RIMM) blow away earnings expectations (again!) really gives this trade a good set-up. The Call Warrants expire on July 4th, 2008 providing ample time for profits, provided Apple (and the technology sector in general) performs. Look at RIMM to see how these stocks can soar.....
Chief Shook
No comments:
Post a Comment