Apple stock is having a great day in the market today after Piper Jaffray released a note about the company. In other news, Jim Cramer weighed in on the stock as well. While we are seeing gains today, today's gains aren't the main part of the story. Instead, the note from Piper Jaffray offered news about a possible opportunity that's coming next week. So today, we'll talk about what Piper Jaffray had to say in their analyst note on the stock, Jim Cramer's comments, and the opportunity we can expect to take advantage of next week. So, let's get right to it…
Piper Jaffray Made A Big Predictions
If you search for Apple news today, chances are that you'll see several mentions of a note published by mainstream analyst Piper Jaffray. The analyst offered their opinion on Apple's new streaming music service; suggesting that the service will become available next week. They explain that the reason they're expecting the service to launch next week is because it should launch at the time of a major event; and next week is the week of Apple's Worldwide Developers Conference. So, considering that we know that the streaming music service is close, and that the event is just around the corner, the prediction really makes sense.
How Jim Cramer Feels About Apple
Jim Cramer is obviously excited to see what apple brings to the table at the Worldwide Developers Conference. Earlier today, he had the following to say about the event…
“The conference has, historically, had some positive impact on the stock…The reason to own, and not to trade it, however has much more to do with superior products, fabulous management and an amazing balance sheet that gives the company the opportunity to award its shareholders – all for 12 times this year's earnings!”
How To Profit From The News
To me, news doesn't mean much unless there's still an opportunity for profit surrounding the news. In this particular case, that's exactly what I see. No one could have predicted that Piper Jaffray or Jim Cramer would have given their opinions today and caused an increase in the company's stock. However, because of their opinions, we can now predict that Apple is going to have an amazing week in the market next week. There are two things that tell us this…
Streaming Music – Piper Jaffray mentioned that Apple's streaming music service should become available next week. If this does indeed happen, we can expect to see a big spike in Apple's stock price. The reality is that throughout history, when the company has released new products, we've seen the stock jump! So, if this does happen, we've got quite the opportunity to profit off of call options.
Without Streaming Music – Even if the streaming music service isn't launched next week, I still think that there's tons of opportunity for profitable call options. As Jim Cramer said, from a historical standpoint, the Apple Worldwide Developers Conference tends to have a positive effect on the company's stock price year over year. Since that conference will be happening next week, we can expect to see uptrends in the stock price; ultimately giving us great call opportunities.
What Do You Think?
Where do you think Apple is headed and why? Let us know in the comments below!