Apple iPhone = Buy Puts
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I know what you're thinking, but I have nothing against the company... it's just that I don't believe the hype. In fact, I never really believe any hype until I experience it myself - first hand. If the hype is warranted, then I embrace the hype and become the hype. If the hype is based on a company's track record or previous customer product experience, I say "prove it."



Sure it looks cool, but no one has experienced the iPhone, yet. I look at that juicy screen and wonder what it will look like after a few hours of my smudgy fingers all over it. How hard will it be to finger in text? Will the "ear/body heat sensor" work 100% of the time when I put the phone to my ear, or will it only work 98% of the time, leaving me with a horrible 2% experience that outweighs the 98%.

It's for these reasons that I see opportunity when a stock goes from $86 to $97 based on "hype." I buy puts.



Feb Expiration - 80 strike. I'm hoping there's a little more hype priced into this one. Leading macro indicators are also pointing to a market correction. Now would be a great time to smash the hype out of this stock, and get it more in line with its actual value.

posted by Jake B. @ 3:00:00 PM