Thursday, 24 July 2014

Going in Long!

Before I go into more details, going Long in investing means that you're expecting the share prices (SP) to go up. Meaning this is the typical stance of buy low, sell high. The opposite is to go Short, which is sell high, buy low.

With that out of the way, I've decided to take up Long positions in both AAPL and BBRY now. I took two Call Options contracts on them with 5 contracts in AAPL and 30 in BBRY. I expect AAPL to give me a profit of about $1000-2000 before expiration and BBRY to give me at least $10,000 profit before expiration. Oddly enough, even though many people would think that AAPL is the safer company, what I've been seeing suggests that I am more likely to achieve better profit through BBRY.

My reasoning for that is due to the Z3 and I think it was Z10 too, flying off the shelves in India and Indonesia. I've also been seeing Z10s from people in my workplace. Some of whom are in the enterprise field and have 2 phones. Some of them were praising the Z10 with claims that the Z30 was better while others seem to have gotten their Blackberry more recently. Either way, things seem to be shifting back to Blackberry. At least outside of the US.

As for AAPL, there's a lot of controversy and uncertainty in the direction they're headed. Part of me feels like they're disregarding the consumers that make them money but it is possible that they're simply looking for better methods to deliver the same level of quality they've been giving so far. I'm mostly hoping the Joint Venture with IBM will bear fruit before my AAPL option expires.

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