Steve Jobs and Obama Rally ?

Breaking News !!!

CNBC reported after market close that Apple CEO Steve Jobs is taking medical leave till Jun 2009. The stock is expected to take a beating tommorrow.

In my 23 Dec 2008 posting, I mentioned about Steve Jobs's health. I still have AAPL April 80 Put as well as a Bear Call Spread (Jan 90/95 Call). My April Put is slightly negative while my credit spread is doing well. By tommorrow, my April Put should be doing well while my buy limit order of $0.05 on my credit spread is likely to be filled. One analyst already mentioned that AAPL is likely to be in the $75 region tommorrow. I think it could be more than that. A knee jerk reaction could force the stock to be down by more than $20 in the pre-market before settling higher. We shall see what happens next.

Obama Inauguration Rally

Prior to the breaking news on Steve Jobs, I am expecting a Obama Inauguration rally on Thursday and Friday. It is partly due to a feel good factor prior to a great event on 20 January. However, the market might be greatly affected by AAPL performance tommorrow. A rally is less likely on Thursday.

Martin Luther King Holiday

This holiday falls on 19 January. Last year, the day after Martin Luther King holiday, the DOW drops more than 600 points in pre-market. This year, the day after the holiday happens to be the day Obama will be inaugurated. While I hope things goes well for Obama, there is a small probability that the Inauguration will be marred with nasty incidents. I am contemplating of buying Puts on SPY or playing Bear Call Spreads (Feb expiry) on SPY by the end of Friday in case the market reacted negatively on 20th January. Whatever happens, I will close these positions on Tuesday if I played them.

PersianCat (Millionaire-in-progress)