Recent news: * Deal with IBM * Split 1:7 * Presentation of new iOS 8 * Acquisition of Beats for $2.6 bln + 400 millions of shares
Tendencies and perspectives: * Smartphones with big screen threaten sales of iPad * market share of tablets reduced according to research * Smart home, Apple Smart-TV, Touch ID, iWatch - these are innovations that investors expect from Apple * iPhone 6 with sapphire glasse? * Rumors: Apple can acquire Tesla
What to expect: * EPS expectations $1.23 vs $1.07 yoy * iPhones + iPads = 3/4 of profit * Analysts upgrades (Barclays, UBS, JMP: $110, $115, $135 respectively) * Comments of upper management and Tim Cook on Conference Call about new products coul be catalyst * I think, numbers will meet expectations
How to trade: * Hold Call options in front of earnings. I like this idea because it has well defined risk-premium and you wont be caught with gap down. * Long above $97 resistance * Long if drop down to support $89.65-$90.00 * Gap up and cover (Buy on rumors, sell on news) * Open below $92.50-$93.00 - short to bigger support