10:30am (EST)

Apple (AAPL, $133.28, up $2.50) gained 7% yesterday and is up another 2% this morning following an analyst upgrade. The stock opened at $124.82 yesterday and made the majority of its move in the first hour of trading but held steady all day long.

The June 125 calls (APVFE, $10.75, up $2.00) closed at $3.80 last Friday and gained well over 120% on Tuesday and are up another 20% today. The call options opened for under $5 on Tuesday so even if you were late getting in by Friday, there was a good chance to make 100% once the market started rocking on Tuesday. (The trade is already over so please don’t start new positions).

The upgrade came on bigger expectations on what impact the latest iPhone could have on revenues and the price target was raised from $180 to $105. Wow. We all know MacWorld is coming up and the demand for the iPhone will hit a feverish pitch again. There have already been reports that AT&T is letting inventory run out so we will have to see if we get the overnight campouts this time around…

Rick Rouse
Rick@OptionsMentoring.com