Friday, April 23, 2010

Bought actual AAPL shares

I am positioning myself for a potential run-up in AAPL shares, selling puts is not the best way to get exposure to this, and as I have sworn off buying call options I am buying shares flat out.  I bought 25 shares at $261.61 yesterday.  I will be buying 25 more shares in the next week, 'dollar cost averaging' into position.

True dollar cost averaging is buying however many shares a certain dollar amount can buy you on a series of dates.  A more accurate description of what I am doing is scaling into a position.  I am going to make this a long term hold in my account with the logic being that Apple will reach yearly earnings of $20/share eventually.  At that point I will be looking for signs that Apple's growth rate is subsiding and will sell out of my position (hopefully for a profit).

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