Protect Yourself From an Apple Collapse

The following video is part of a special series in which Motley Fool analyst Andrew Tonner and "Options Whiz" Jeff Fischer discuss how to make 2012 the year YOU master the market.

In this edition, Andrew and Jeff analyze Apple. Investors should always invest in stocks they love. However, they might not realize other investing strategies can complement their holdings in a number of ways. In this article series, part of our Options Education Month, Motley Fool Options co-advisor Jeff Fischer sits down with fellow Fool Andrew Tonner to talk about how investors can use options to protect a stock they want to continue holding but fear might decline as well.

For more details on how to trade Apple using similar options strategies with as much potential or more, just click here.

You'll be directed to the Motley Fool Options Whiz -- our interactive "Options U" designed to teach you to trade options sensibly, with a minimum of risk, and all the resources of The Motley Fool behind you -- all 100% FREE!

Jeff Fischer owns shares of Apple and Google. Andrew Tonner does not own shares of the companies listed above. The Motley Fool owns shares of, Google, and Apple. Motley Fool newsletter services have recommended buying shares of Google,, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (3) | Recommend This Article (2)

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  • Report this Comment On December 13, 2011, at 2:40 PM, deemery wrote:

    An Apple collapse in 2012 is about as likely as the Earth getting hit by an asteroid. That's to say nothing about out-years, but the inertia of Apple products for 2012 is pretty much unstoppable (particularly when coupled with their cash on hand.) So this is Yet Another posting that lives up to the "Foolish" monicker.

  • Report this Comment On December 13, 2011, at 3:57 PM, 1984macman wrote:

    It's actually beyond foolish. Look at it this way; if Apple only grows half as much as it did last year, then a year from now Apple's EPS would have grown from $27.68 to $41.52. And even if the P/E dropped from 14 to 10, the stock would still be worth $415/ share. In other words, even in a worst case scenario, Apple stock would hold its value.

    And in the best case scenario - well, let's just say there'd be a lot of champagne corks being popped....

  • Report this Comment On December 13, 2011, at 5:10 PM, dundundundun wrote:

    @deemery, Inertia? Apple's stock price is slowing if anything, so their momentum would actually suggest a less than stellar year in 2012

    @1984macman (aka apple fanboy) "worst case scenario" is that a company has half as much growth? tell that to RIM. I think you need to back out of the market if that's your what you think "worst case scenario" is for Apple.


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