Paper bought 3000 IRM Jan 2014 32.5 calls for $2.75 (13.7 times usual
volume) when stock was trading $32.16
Paper bought 2626 SE June 28 Calls for $1.20 (3.2 times usual volume)
when stock was trading $28.20
Paper sold 5000 MAT Feb 37 Puts for $1.375 (13 times usual volume)
when stock was trading $36.66
Paper sold 9525 MPEL Jan 17 Calls and bought the April 18 Calls for
$.60 debit (5.3 times usual volume) when stock was trading $17.69
Paper sold 1998 SSI Jan 25 Calls for $.075 (18.4 times usual volume)
when stock was trading $22.37

In the same report TGBus also stated that AAPL is working with Intel on a Bluetooth watch that would be compatible with the iPhone. Supposedly the iWatch device will be able to link to the user’s iPhone via Bluetooth connection, which allows for AAPLs voice assistant software Siri, to send voice commands from the iWatch to the iPhone. Voice assistance from Siri could make checking emails, sending a text message or setting a reminder, even simpler while wearing the iWatch device.  AAPL has not made an announcement confirming the recent reports, however, some analyst claim that it’s only a matter of time before wearable computer devices take over the market. Piper Jaffray analyst, Gene Munster, said “We believe that longer term, over the next 10 years, wearable computers could eventually replace the iPhone and smartphones in general.” The rising popularity of the AAPL approved iWatchz may encourage AAPL to enter the market with its own smart watch device. The iWatchz are designed to turn the iPod Nano into a wrist watch. If AAPL successfully entered the smart watch market other tech companies would be inclined to compete for market share by developing their own versions of the smart watch devices. AAPL has done an exceptional job creating demand for their products, which normally out sell their competition. AAPL already has its own cloud platform, voice recognition software, and of course the iOS operating system that can be incorporated into a new device. By already possessing excellent technology AAPL is in a good position to develop an iWatch device and take control of a large portion of the smart watch market.

Author: Tyler Sciortino

Current Student at Roosevelt University, Majoring in Finance.

Contact for questions or inquiries at tsciortino@mail.roosevelt.edu

Bloomberg’s historical data compilation shows the near 33% decline in VIX futures over the past 2 days to be the sharpest on record, defying pundit wisdom that a cliff resolution was ‘baked in’ to the market.

Since 2004 the January 24, 2007 VIX close of 9.89 is the lowest on record – and was preceded by 4 months of trading in a 2-point range between 12 and 14; the same period in 2012 shows a nearly a 9-point range.

While the market’s response was clearly favorable to the House’s 11^th hour passage of a bill staving off widespread tax increases – predicted by many economists to throw the US back into a recession – the legislation does nothing to mitigate a much greater threat posed by the pending debt ceiling. The Treasury has taken self-proclaimed ‘extraordinary measures’ to create $200B in headroom giving Congress a late February/early March deadline to strike a deal. A protracted negotiation or absence of a deal threatens the nations AA+ rating and would engulf the markets in further turmoil.

The next deadline is that of the ‘sequester,’ a series of automatic federal spending cuts ranging 8%-10% born out of the 2011 debt ceiling deal and designed as an incentive to force legislators to be effective in reducing deficits. While defense is widely projected be the hardest hit in the absence of a deal, programs across the board would suffer.

The third issue facing lawmakers is that of the ‘Continuing Budget Resolution’ and its March 27 deadline. Since Congress has been unable to agree on a real budget for years, they have instead become reliant on short-term resolutions that essentially amount to a ‘band aid’ approach. Without an agreement, expect to see a shutdown of government functions and programs.

Unless we are witness to a dramatic departure from the dysfunction of the 112^th Congress – the most unproductive session in 70 years – with the swearing in of the 113^th, I wouldn’t bet on VIX futures going south of 13 in Q1 ’13. Certainly not below 12, not with 3 pending ‘cliffs’ that will undoubtedly be accompanied by countdown clocks on the sidebars of various broadcast media outlets.

Further down the road in 2013, the only circumstance where I can envision a further decline in VIX levels would be if we were to see a favorable resolution to the European situation. Angela Merkel gave ominous closure to 2012, saying:

“I know that many are also heading into the New Year with trepidation. And indeed, the economic environment next year will not be easier, but more difficult. That should not discourage us, but – on the contrary – serve as an incentive.”

Based on the information outlined here, I believe we may have come very close to seeing the low VIX level for the year in 2013’s first day of trading.

—
John Voorheis
KOTM Contributor
john@keeneonthemarket.com

UNC-Chapel Hill, Class of 2008
BA Economics; Political Science

The report comes from Brian White who is an analyst from Topeka Capital Markets, who believes we will be seeing the new iPhone by June and possibly by May. White also thinks that it could be offered in five new colors including blue, pink, yellow, silver and slate. It would still be offered in white and black but these new colors could be the punch that consumers are looking for!

As for the screen sizes, it looks as though Apple will offer two different sizes, 3.5-inch and 4-inch displays. Currently, the iPhone 5 has a 4-inch display and the iPhone 3/GS had 3.5-inch displays. Who knows, Apple could surprise us with a larger screen than 4-inches but at this moment it is unclear. The most compelling aspect about different screen sizes is that it allows for competitive pricing by Apple. Everyone has competitors, and with the pressure droids are putting on the iPhone this could be the step Apple needs to take to offer it at lower prices.

As great as all of this might sound, we need to keep in mind that theses are just rumors! Analysts aren’t always accurate and sometimes are flat out wrong. It is Apple we are talking about, they love to keep secrets from us. Until we know more from the source itself….

‘Stay Hungry Stay Foolish’

                        -Steve Jobs

Author: Peter Nitso

pnitso@yahoo.com

Twitter: @PeterNitso