We're going to start 2020 out with hefty gains from 2019!
The goal of Wealthy Tech Investor isn’t to buy and hold but to buy, hold and manage.
On Jan. 2, 2019 we went long shares of Apple Inc. (AAPL) - right now we’re sitting on a 90% gain!
However, we were able to increase our returns into triple-digit gains with premium collected selling calls against shares.
This move higher in Apple made it the best performing Dow stock in 2019 - 17% of the move coming from Dec. 3, 2019, alone.
Many analysts out there such as Gene Munster who believe the iPhone maker’s shares could still increase to $350 or $400, I think we could see a limited upside in shares.
This reminds me of the old saying on the trading floor “when the ducks quack, feed them.”
Here’s why I say that; Apple continues to see a shift in its business as it’s no longer simply seen as a phone company with a continued decline in iPhone sales - it’s emerging as a service and wearable company.
Many argue that Apple’s current earnings multiple is still undervalued compared to other big technology companies, but I think they are comparing apples to oranges.
As we look at prevailing economic trends the customer has tapped out and Big Tech will continue to face hurdles with the U.S. Justice Department Antitrust Probe.
Also if history is any indicator, the Dow’s best performing stock is typically one of the worst in the following year.
This is a company that will monitor, but at these levels, it’s hard to stay long when a pull-back is inevitable.
It’s time to lock in our gains and get into better opportunities we’ve identified.
Action to Take:
Sell all of Apple Inc (AAPL) at Market Open