Apple knocked it out of the park!
Last night, AAPL reported the most profitable quarter of any company in history - EVER!!! - making $18.04Bn in the last 3 months of 2014. That's $8.3M per hour in PROFIT with almost $1Bn/day in revenues ($74.6Bn for the quarter). The company made $3.06 for each $109 share and that was already up 10% since last Q.
I'm sure NOW it is obvious why AAPL was our Trade of the Year in 2012 ($52 when we made that pick) as well as 2013 ($72) and again this December, even though it was alread hitting $110 after the split. Of course, we didn't just play the stock at PSW, we played the options and our Top Trade Idea for Dec 17th was:
- 20 2017 $90/120 bull call spreads at $13.50 ($27,000)
- 20 short 2017 $85 puts at $9.50 ($19,000)
Our 2013 Trade of the Year is pictured on the left and made the full 614% expected and our 2014 Trade of the Year parlayed that money into the following:
- 10 2016 $450/600 bull call spreads at $65 ($65,000)
- 10 short 2016 $450 puts for $41 ($41,000)
That trade is already 100% in the money and will make the full $126,000 (525%) if AAPL holds $85.72 (post split), which is why we were able to be be nice and aggressive with our 2015 Trade of the Year, going for another 650% if AAPL is over $120 in Jan 2017. I know it sounds boring to keep picking AAPL for our top trade 3 years in a row but I don't know a better, safer way that we could have made 614%, 525% and now 650% on our money 3 years in a row than betting on the fact that AAPL was severely undervalued by the market (here's me on TV on 12/19 discussing the Apple trade).
