Well, well, well. Look who is not going away without a fight. A day after setting a 52-week low of $78.20, Apple (AAPL, $82.83, up $4.63) made a strong comeback rising 6%. After the closing bell, Apple reported record revenue of $10.17 billion for the quarter as income came in at $1.61 billion, or $1.78 a share, versus $1.58 billion, or $1.76 a share, in the year ago quarter.
I had profiled the option activity surrounding Apple earlier in the day and mentioned the 2-to-1 ratio that the calls were getting compared to the puts. Well, if you read between the lines then you should do pretty well with the February 90 calls (QAABR, $2.90, up $0.90).
These calls were profiled at $2.25 and if you jumped in, you are set for a big payday on Thursday. Apple is up nearly 10%, or $7.75, to $90.58 in after-hours trading.
If the stock holds up at the opening bell, sell these call options as soon as the market opens. The calls could trade as high as $4-$5 if Apple can open at $90 or better. This would get you a 100% return in less than 24 hours…
Rick Rouse
Rick@OptionsMentoring.com