I may have mentioned AAPL a couple of times, after all, it was our 2013, 2014 and 2015 Stock of the Year but not this year, as we were at $120 last Thanksgiving, when I make my picks for the following year, and we saw a rough year ahead so our Trade of the Year for 2016 was the Natural Gas ETF (UNG), which is right on track. Anyway, I laid out my logic for the AAPL trade on TV (as I always do with our trades of the year) and this graphic they used lays out the idea we had to take advantage of AAPL.
The target price was $120 and the target time was Jan of 2017 and we've been in and out of AAPL along the way, buying whenever it's below $100 and selling when it went over $120 because, as I noted yesterday, we are FUNDAMENTAL investors and we KNOW what our stocks are worth so we buy them when they are cheap and we sell them when they are expensive. I know that's a strange concept to most investors but trust me – it's a profitable one!
Notice we don't NEED a stock to go up for our Trade of the Year to make money – that's not how we play the market. At Philstockworld, we use the simple options strategies we teach our Members to construct plays that give us tremendous upside leverage. Using the above bull call spread and put combination, we netted into the AAPL trade for just $8,000 in cash and, if AAPL manages to hold $120 into January, the bull call spread will be worth $60,000 for a $52,000 profit (650%). This is good money for two years' "work", right?
Every year, in an attempt not to be boring, I struggle to find a Top Trade Idea that's better than Apple but that doesn't mean we aren't afraid to go back to the well, over and over and over again – when the opportunity presents itself. As recently as August, when Apple dipped back to $108.36, we made AAPL our Top Trade Idea for the Week on 8/22 and I…