Apple Inc (AAPL)

(A Top Pick Dec 21/11. Up 95.12%.) Bullish Put Spread. Sold Jan’13 420 put @ $70 and Bought Jan’13 380 Put @ $49.50. Was obligated to buy the stock at $420 right through until this January. If he was wrong and the stock collapsed, he had the right to put the stock to somebody else at $380.

How would you play your options before an earnings release? If he were going to do this, he would buy a Straddle that would expire at the end of the week of its earnings release. So you are looking at a weekly option and you would be buying a Call and a Put that would expire on a Friday. Earnings come out on a Tuesday giving you an option that has 3 days to expiry. Look at the cost of the at the money Call and Put on Tuesday before they announce they announce earnings after-hours. That will give you the trading range that the market expects the stock to be in.

(A Top Pick Sept 13/11. Up 65.64%.)

(A Top Pick Aug 15/11. Up 64.39%.) AT&T is preparing their staff for a new product in late September so he presumes this is going to be the iPhone 5. Trading at 10-11 times earnings and still no end in sight for the growth.

Chart shows a period of congestion for most of 2012. There will probably be another move to the upside accompanied by volume.

Owned for 4 years and loved it. He has been trimming his position. Over $600 it is a stock that he would rather be a slight seller of. They are doing everything right, tremendous margins and R&D budget. But Sony was the same when they stopped going up. Proliferation of Apple products is extensive and can you get another lift. He sold RIM and has not looked back. He is positive on Google. Samsung Galaxy feedback is great and he likes that company.

This is his largest portfolio holding and has held it for quite some time. Trading at 14X forward earnings. Long-term growth rate is probably 20%-23%. There are some catalysts coming up with iPhone 5 and iPad 3 will be coming out later this year.

Continues to be an innovative product leader. You are buying this ex-cash at about 9X earnings. Tremendous growth potential. Potential to pay a tremendous dividend if it decides it wants to. New iPhone is probably coming out this quarter.

(Market Call Minute) Model price $542