AAPL’s Iphone concerns should be dismissed without reservations. The shares are a strong buy!
Posted by Jack Haddad on February 22, 2008 at 12:54 pm
Apple’s challenges regarding its inability to generate the promised sales and revenue from iphones is not warranted. because the iPhone likely generates gross margins of 55% to 60% — compared with 30% to 33% gross margins for the rest of Apple’s product line — the device could be responsible for as much as 80% of Apple’s earnings.
That said, bought 5 blocks at 116.45 and wrote 500 March strike 115 at 6.60/contract. I feel that I not only have a hedge of approximately 5.00/share but also a good pivotal entry.
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[…] Some Rights Reserved wrote an interesting post today on AAPL’s Iphone concerns should be dismissed without reservations. The shares are a strong buy!Here’s a quick excerpt because the iPhone likely generates gross margins of 55% to 60% — compared with 30% to 33% gross margins for the rest of Apple’s…Apple’s challenges regarding its inability to generate the promised sales and revenue from iphones is not warranted…. […]
Hard to argue with this one - Apple is a strong, innovative company sitting on over $18 billion in cash and 0 debt. They make ease of use a cornerstone of their product design - which is very appealing to consumers.