Thanks for stopping by Investing Dad. And, I am Roger Hutchison, and right now I am going to talk a little bit about how to avoid advice that may not be in your best interest. Even though the people giving it to you, may just -- they're doing you a favor. My coach, my investing coach, that I've been learning how to do Options trading from, he has a conference call that he does every couple of weeks, and a couple of ago, he suggested a strategy on Apple.
Now, he has made a lot of money on Apple and that's great, that everybody has, and he knows the stock well. So what he says, "Hey! I think Apple has hit the bottom and we should do this Bull Call Spread." I listen to it, specially when it's a 14:1 payout. Yeah, call, he's the call. So was like, well, Okay, sure what the heck! It's the options that we bought, but he suggested that we -- he actually didn't suggest we buy them; he suggested that this is a good value. Yes, call, that's right.
Anyway, so it's Options for April, so I was like, plenty of time, Apple gives earnings reports on January and stull like that. So pretty safe strategy. Hi Nathan! Yes, hello. Yeah and so I went ahead and bought into that, and the day after that, the stock went straight up and I was like, well didn't go straight up, it went up and I was starting to make money on the possessions. I was like, this is great up, I might cash that early. Hi Nathan!
Yes, and so it -- but the next day we had all kinds of the bad economic news. We had all the bad economic news as I pretend to as that's one. So, anyway, alright. All the bad economic news came out and the Apple stock started going down and hasn't really come back up. It's down $80 range now, and that started out, it was at $120 something. So it's gone down really significantly, and the stock as it needs to go back up to $210 to maximize the return. Hi Nathan!
It needs to do that by March. So I am hopeful but it probably wasn't the best news, and I could have avoided it. I have a kind of a point here. I could have avoided it by using some of the basic technical strategies that I've been learning over the past few months. Yes. Hi Nathan! Can you sit please. Thank you.
Using the strategies that I talked and if I did that I would be able to see that Apple was nowhere nearer a turned around. Basically it was trending downwards and it wasn't giving any of the technical indications that it should be turning around and going back up again. But I trust John, I of course trust John, but it still need to trust but verify. I should have verified it before I went back and went on that insight study that he gave me.
So that's basically the point, is take everything -- if you're going to listen to somebody, somebody you trust, go ahead and verify it before you make a move. I made that call and hopefully it doesn't turn out to be a mistake. We'll see if it still turns out and I can at least make my money back on it, but breakeven is, there are still ways up there.
So anyway, volatility kind of helps with the Option prices too as I might be able to breakeven earlier than I originally thought. So, that's the lesson. Sorry about the -- hope you'll hear everything with the boy. So, good luck and take care!
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