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Post by lovemyipad on May 16, 2014 15:00:27 GMT -8
The bar is open!
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Post by phoebear611 on May 16, 2014 15:02:58 GMT -8
I'm wondering if the run up was a DRP plan - it could have really been anything - including option expiration but it's too coincidental that it occurred the same week that people received divs. Whatever it was - thank you!
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Post by calvinav on May 16, 2014 15:43:49 GMT -8
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Post by rickag on May 16, 2014 16:36:36 GMT -8
Didn't say anything about not suing Lenovo,
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Post by Red Shirted Ensign on May 16, 2014 17:01:23 GMT -8
Tea, Earl Gray..hot Loved the close...
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Post by phoebear611 on May 16, 2014 17:12:11 GMT -8
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Mav
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Post by Mav on May 16, 2014 17:43:22 GMT -8
Pretty good week! AAPL could do worse than set up for another run at 600 on Monday.
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Post by rickag on May 17, 2014 4:16:39 GMT -8
Goldman Sachs bought 1.4 million shares and 4.8 million puts. If I remember they are involved with Apple in the buybacks. I wonder if some of the puts are related to the buyback???
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Post by Zeke on May 17, 2014 7:58:54 GMT -8
I don't know why the run up occurred. I don't think it's Apple and Motorola dropping lawsuits. I'm not sure how dropping those lawsuits is a good move by Apple. Motorola was pushing mostly SEP patents, whereas Apple's were legitimate proprietary patents. I suppose it could be dividend reinvestment, but it seems unlikely. My first thought was that something happened related to the Beats deal. I guess next week we will know.
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Post by phoebear611 on May 17, 2014 10:35:10 GMT -8
Goldman Sachs bought 1.4 million shares and 4.8 million puts. If I remember they are involved with Apple in the buybacks. I wonder if some of the puts are related to the buyback??? Two things: 1. How do you know Goldman is involved in the buyback? (If it is confidential then I get it - but wondering if something drew you to that conclusion) 2. Do you know which puts they bought? ... and whether they bought to close because that would make sense for the buyback. Selling puts to initiate a buyback is done all the time and has been done for years by corporates.
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Post by rickag on May 17, 2014 10:54:21 GMT -8
Goldman Sachs bought 1.4 million shares and 4.8 million puts. If I remember they are involved with Apple in the buybacks. I wonder if some of the puts are related to the buyback??? Two things: 1. How do you know Goldman is involved in the buyback? (If it is confidential then I get it - but wondering if something drew you to that conclusion) 2. Do you know which puts they bought? ... and whether they bought to close because that would make sense for the buyback. Selling puts to initiate a buyback is done all the time and has been done for years by corporates. My memory or isn't what it used to be but I recall reading that Goldman was handling the buybacks, maybe it was just supposition by reporters. As far as them buying puts the only information I have is from the above article you linked to, no confidential info. If I had access to this type of information I would be drinking margaritas on a beach in the Caribean.
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Mav
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Post by Mav on May 17, 2014 11:20:24 GMT -8
phoebear, do you happen to know general stuff about ASR programs? Is whoever gets the $12B from Apple allowed to acquire the shares via what I guess are cost mitigation strategies (selling puts, etc.)?
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Post by Red Shirted Ensign on May 17, 2014 15:27:37 GMT -8
This was the highest weekly close since October of 2012...I had hair clear back then
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Post by phoebear611 on May 17, 2014 15:30:24 GMT -8
phoebear, do you happen to know general stuff about ASR programs? Is whoever gets the $12B from Apple allowed to acquire the shares via what I guess are cost mitigation strategies (selling puts, etc.)? I am not certain who (which firm) handles Apple, the Corporation. Corporate buy-backs were often handled by one investment banking firm but soon the Corporates caught on that the street was too smart and could see them coming a mile away by virtue of a specific bank being out there buying back stock (once the street suspected a certain bank - they watched "how" they bought the shares...ie bidding them and not taking them...not participating during last 10 minutes of trading...etc) - then BINGO, they (the brokers) could lean against that bid and make money all day long. Corporates started to wisen up and began splitting their business in hopes of keeping anonymity (although some stick to one banker regardless). In the early 90's (maybe before - my memory is vague at this point) we started to utilize other strategies other than simple buy-backs....the put sale became popular. Interestingly if the stock continued to rise - the premium collected on the lower put strike was simply additional cash to the corporate. Conversely, if the stock fell, the corporate was assigned the stock (the stock was "put" to the corporate) but at a lower basis since it was discounted by the premium they had initially collected. I often thought that conservative Corporations would not do these strategies and then I saw the list of names of some of the ones that the firm I worked for executed this strategy for and was floored. There are very visible and very conservative CEOs that are actually very verbal about disliking derivatives and keeping things simple....and yet sell puts as part of their buy-back program. I have no clue if AAPL is part of this strategy but they would be nothing short of... well,... STUPID, if they weren't. There are probably other strategies that have been developed over the last couple of years by the Corporate Buy Back groups at the various firms that work closely with their investment bankers. If the Board approves the strategy, it gets done. I don't know who Apple's investment advisors are - but I'm guessing it is more than one firm...or maybe not. To guess that it could be GS is a pretty good guess. They really are the premier banker these days...but again, I would only be guessing. Here's the other thing. Firms like GS or JPM or MS do a ton of over the counter (not listed) structured products that incorporate AAPL...and they do it often...some even WEEKLY. They sell them to retail and to institutional clients for a million reasons...a spec, a hedge, etc. So, we could see them out in the marketplace and assume they are executing for AAPL, the Corporate, when in fact they may be executing for a huge global client or for their retail arm or the retail arm of another firm (ie folks like JPM bid their retail structured products out to other firms as well as to their internal folks). So who knows at this point. Best way of figuring it out is to be a super sleuth and connect the dots after the fact....and then just assume that AAPL will continue to execute through the same brokers in the future and watch those brokers closely. Have I confused everyone sufficiently enough? And yes, Mav, if AAPL is fine with the strategy the broker can do it that way.
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Post by rickag on May 17, 2014 16:56:36 GMT -8
Answering for myself, yes, as in a big 10-4.
One interesting thing, each put represents 100 shares, right. So Goldman bought 4.8 million puts in the last 3 month reporting period representing abiut one half of all AAPL shares outstanding, amazing.
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JDSoCal
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Post by JDSoCal on May 17, 2014 17:56:17 GMT -8
This was the highest weekly close since October of 2012...I had hair clear back then Sorry red, we don't count ears and back.
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Post by bryanyc on May 17, 2014 21:04:49 GMT -8
Have I confused everyone sufficiently enough? Actually, I think I get some of it, I can see the strategy. Thanks Phoebe. What are the expirations, if anyone knows, on those puts that were supposed to have been sold? I took a small gamble (after some earlier losing ones) of purchasing a 585-590 weekly spread on Friday at near the days bottom. The short leg made 1,200 percent in a few hours (luckily less absolute gain than the long 585 by 50%). I wish I had just gone long the 590 obviously! This is small change compared to my Jan 15 500's position that I have been holding for more than a year after the drop below 500, and my Jan 15 550's purchased around 435 last year. I still maintain that we are going to see 610 - 620, the top of what I see as a channel on this rebound (and the bottom of the old 5 year channel). The jump above 540 is going to take a positive reaction to a product introduction IMHO. I don't see this at the Developers conference. Will Apple signal upcoming new platforms at this conference via software (for AppleTV, a larger iPad/laptop hybrid , or even the iBand) or not? I think they will play this very close to the vest. People don't really believe Tim's double down on secrecy promise - but have you seen any "actual" rumors on the iBand (as in production sample)? The answer is no. Ditto for the AppleTV. Not set out to production yet. All in house still. They will really keep this secret, and present a few months before the production. Not like the iPhone, which is such a mammoth production that it can't be kept secret. It's going to be an exciting 1/2 year coming up. Hang on.
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Post by Red Shirted Ensign on May 18, 2014 5:57:51 GMT -8
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Mav
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Post by Mav on May 18, 2014 9:07:20 GMT -8
Thanks for the info phoebear! Wasn't expecting that long an answer.
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Post by phoebear611 on May 18, 2014 10:38:13 GMT -8
Seems like no one is expecting any product announcements until Sept - and a few think possibly August. The developers conference seems to be exactly that ...and no one expecting any sort of excitement or surprise out of it. So the only thing to get this stock moving is the split on June 9th (the day the split shares start trading) which is also my BIRTHDAY! I know the debate has been had on whether the stock gets bought up until then and then sold or whether an influx of buyers comes in post split and runs the stock. I am in the camp of the latter. I'm not suggesting that some of the former isn't going on but I have so much anecdotal evidence of folks waiting till the 9th in order to be able to buy a few shares. Interesting times...
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Mav
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Post by Mav on May 18, 2014 12:54:34 GMT -8
WWDC should have announcements...they'll just be met with yawns or something by bloggers and tech media if they're not "new product categories" or a new iPhone 6 or something.
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Post by Red Shirted Ensign on May 18, 2014 15:37:40 GMT -8
Tomorrow's opening should be very interesting.....
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Post by mrentropy on May 18, 2014 16:13:37 GMT -8
Tomorrow's opening should be very interesting..... I agree, but more interesting to me is whether the Monday run-up (if there is one) can push through the last high.
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Mav
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Post by Mav on May 18, 2014 18:19:03 GMT -8
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