My shares of Apple were called away over the weekend and I am re-establishing a position at the same strike.
music selection: “Ride Like The Wind” — Christopher Cross
weigh-in: 216.0 +2.0 – Too much pizza!
Apple remains very attractively valued. The company is producing over 63 billion in free cash flow per year. There is over 38 billion in cash and short term investments on the balance sheet. Conservatively, the company is selling for 12 times free cash flow net of cash. All this in a company that is still growing sales.
This morning I sold AAPL160422P00100000 for 2.20 a contract. The trade will be in force for 40 days and yields 20.08% annualized. I broke with my current approach of going out of the money to reduce yield to 12% for extra downside protection because I feel this company is very strong. I was still able to manage 4.47% downside protection in the trade. I have trades in QCOM and MSFT for you later in the week.
Devour your prey raptors!