You are financing my iPhone
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The iPhone! The greatest invention since the web! That might not be totally true, but the iPhone will disrupt the way we communicate.
One day before the introduction of the iPhone, boris came up with the idea to buy Apple shares in order to buy an iPhone ourselves from the profit.
Half a year ago when Steve Jobs announced the iPhone I analyzed the stock during that keynote speech. I’ve never seen any CEO adding 6 billion dollars to his company in 1 hour! Great stuff!
Before the introduction of the iPhone the Apple stock already got up 50% to 122 dollars (from 82), so the pressure was on, expectations were very very high! We decided to take the gamble and buy some Apple options (as we didn’t have enough money to buy stocks :) ) at 250 dollars. The stock was trading at 122 at the time.
Now the stock is trading at 138 dollars and the option is worth 710 dollars. This means that the public is financing my iPhone! What a nice thought :)
But if you think about it for a couple of seconds… It makes sense. Apple is the best selling brand worldwide and are still able to maintain their high margins. Now they are disrupting the mobile market with a superior device. The iPhone is the fastest selling consumer technology product of all times!! With over 4 million products sold in the first 3 weeks!
One tip: sell at 150 dollars and buy Palm put options (they are virtually dead).
