Sell AAPL

The sell off has already begun and AAPL moved down about 3 points with the rest of the market thanks to more bad economic news (AIG and Dell reported no so great numbers). Now you might be questioning why I sold these given that AAPL could move down even more, maybe even plunge. Very true, but there's one problem: AIG and DELL have nothing to do with Apple's business. You could argue that DELL is an indicator of the overall PC market, but I would argue yes, only for Windows based PCs -- AAPL is it's own category which in part explains why it's so successful. Anyways, take your free catalysts (and two of them) and run!

Finally, the talk of the SDK. Now I am a developer, so for once I actually know what I am talking about here (yeah yeah laugh it up everyone ;P). What's the big deal? It's a library that lets you create applications for the iPhone. Ok? And? "Well people can start developing 3rd party applications that will drive the sales of iPhones". Ok? And? If people don't have money, how are they going to buy those iPhones because of those pretty new applications? Anyhow, who am I to argue with free hype, so I look at this upcoming news as a chance to get into some calls leading into the SDK hype, and when that hits cheap puts for the post-SDK down turn.

Sell to Close: 10 puts of AAPL March 115 at $1.07

Gain: $240

--Kevin