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Wall Street just gave us another 13% “income gift”…
Last week tech titan Apple (AAPL) reported its first year-over-year (YOY) quarterly revenue decline in 13 years. Analysts chalked it up to declining iPhone sales.
The company raked in $50.6 billion for the quarter—more than most companies’ entire market caps. Yet shares have sold off about 10% since the earnings announcement.
It’s a textbook Wall Street “overreaction”… and another “gift” trade for safe options income seekers—like Tom’s Palm Beach Income subscribers.
One of “superinvestor” Warren Buffett’s most insightful quotes sums up the situation:
Master trader (and Casey Research Director) Brian Hunt puts it this way:
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The key is to only sell options on high-quality assets that have suffered through a crisis of some sort. That’s when the value is the greatest, the option premiums are high, and the position gets massively de-risked. |
Apple fits the bill in both cases. Here’s what Tom told his PBN subscribers:
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Here’s the thing… Apple isn’t fazed by these “weak” results. The tech giant raised its dividend 10% and increased its already huge stock buyback program by $35 billion to $170 billion. To put that number in perspective, $170 billion is 32% of Apple’s $539 billion market cap. This means Apple shareholders will see their ownership stakes increase in value by 32% as the company executes these buybacks… without lifting a finger. Sure, in a perfect world, any company would like to see its sales and profits marching relentlessly upward. But then again, if that happened, we wouldn’t have opportunities like today. |
Bottom line: Thank Wall Street for another great “overreaction” trade. PBN subscribers are on track to bank another 13.1% in annualized income. (It follows this “clockwork” 13% trade from the “Microsoft ATM.”)
All Palm Beach Income subscribers can click here for the full AAPL trade details.