Last Thursday, I was looking at my trading
platform trying to find an opportunity.
This market has been so dull and uneventful.
It feels like you’re sitting in a government
office waiting to be called filled with 30 other
people and counting them down.
Then all of a sudden out of the corner of my eye I
start to see Apple drop like a rock, again.
That’s a little interesting since earnings were
out a few days before that saw prices decline.
So I clicked on the symbol and started to watch it
drop from 98 to 97 to 96 and then bounce off 94
and hold into the close.
As it began to fall, I quickly knew like the rest
what may have spooked more investors.
Mr. Carl Icahn was on CNBC and said they had
exited all of their Apple position.
Slow clap, it was a great trade, but I don’t agree
with his tactics of using social media or T.V. to
talk his position, but if people are that
uninformed to put stock into what he says, it’s
I find it funny how many people and even
professional trash CNBC, but still watch it and
listen to guys like him.
Do I watch it?
Do I care what Mr. Icahn says?
Nor should you.
Taking the words of The Rock, It doesn’t matter
what he says!
So many get lazy or think that people like him
know more than you.
Hedge fund managers have HUGE egos, which leads to
taking enormous positions, which means substantial
While Icahn’s Apple trade worked well, take a look
at his other holdings.
They are losing a lot of money.
While he cited a few reasons why he sold, the one
he failed to bring up was he likely needed to.
With those other positions that have been
hammered, he needed to release some capital.
So if he sold his stake over the last several
months, how come you didn’t know about it until
after the fact?
I mean he talked it up when he was in for the last
year getting people excited.
There are so many lazy financial professionals out
there that manage money, They idolize people like
Icahn Because of the amount of money under
management, which to them is a status of success.
So the natural process is for these people are to
follow what he’s doing.
Who gets hosed?
Apple prices are back to October 2014 levels and
like most who just follow people and don’t know
what to do afterwards, they take the ride and end
up at the same place.
So where does Apple go from here with Icahn out?
Same as before, up or down.
Bias is part of creating success, but putting on
the right trades are more important.
If you think prices go higher here, you buy a call
spread or calendar
If you think prices go lower here, you buy a put
spread or calendar.
Apple implied volatility dictates that.
Knowing how to craft the right trades consistently
is part of the formula for your success.
If you want to know why that is and have a desire
to create more success doing it yourself, then
this manual for your success is what you’re going to
To your wealth, freedom & options!