Davis Martin of DailyProfitMachine.com said that investors who expected Apple (AAPL) stock to falter when the company was announcing its latest iPhone learned the hard way that playing rumors against strong stocks doesn’t work out. Instead of shorting or using put options on strong companies facing a news announcement, Martin suggested letting the news play out, buying on any dip if one occurs.
Davis Martin is the head trader at DailyProfitMachine.com. He trades SPY calls and puts and swing trades mid-large cap stocks and stock options. At the time this interview was taped, he had no shares, options or open orders on AAPL. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.