Apple announces earnings Wednesday after the close and I have come up with a strategy that looks like it can make a decent gain for the week (ranging from 5% to 15%) with almost no chance of incurring a loss.
The big downside of the strategy is that it requires an investment of about $16,000. I understand that many subscribers are looking for less costly option investments.
However, if you can afford an investment of this size, check out the Seeking Alpha article I wrote just yesterday.
Here is the link – A Remarkably Safe Way To Play The Apple Earnings Announcement
This is the third week in a row that I have offered a strategy centering on the unusually-high option prices in the series that expires just after an earnings announcement.
The first play was for Wells Fargo – How to Play the Wells Fargo Earnings Announcement for Tomorrow. This one gained 44% after commissions.
The second play involved eBay – How to Play the EBAY Earnings Announcement. I waited too long to close out my spreads this time around (many subscribers gained 24% or more). But I did manage to make 11.6% after commissions, still not a bad week.
I think this week’s earnings-announcement play is the safest one yet in spite of the high cost requirement. I am also sharing with paid subscribers a most promising play in Starbucks (SBUX).