Boeing and Apple Leaps

I see that the following leaps offer very good risk/reward ratio in this frothy stock market.

Boeing is down because the window issue.
Apple has been trading sideways since Dec 2021.


This is a Jan '26 AAPL 200/230 BCS (Bull Call Spread).

I took a look and the Jun '26 AAPL 200/230 BCS would have similar characteristics and a very similar price … but will allow the Apple FY 26Q1 (CY 25Q4) report to be in already.

There is less liquidity in the June ones, but since this is Apple, a giant, almost everything ends up with substantial liquidity. So reasonable trade sizes can be done with almost any combination.

Market cap on Dec 2021: $2.8T
Market cap on Feb 2024: $2.8T

Shares outstanding:

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10x in 10 years, it has a long way to mean revert (h/t old Berky crowd) :slight_smile:

Why is mean reversion useful for your thinking?




I am not suggesting “mean reversion”. It is a sarcastic post. The old Berkshire guru’s favorite argument is “mean reversion”. If you do it, it is sin, If I do it, it is great… :slight_smile: Buying back is managing stock price… why is buffett not buying at these prices… if you have no use for cash then give it back to shareholders… we should not do a dividend, and hoard $100 B+ cash because there market decline is imminent and WEB is going to back up the truck… yada, yada…

:joy: :joy: :joy:

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It is a high probability that Apple is a $220 in 2.5 years.
Vision pro will be on version 2 and a success.

Good day to place covered calls

The stock price was trading sideways for 3 years while business improved and Apple share buyback increased.

Then Warren sold. Since then, Apple price has risen quite a bit.