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The rise and fall of apple options made by Andy Zaky

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April 29, 2013 – Comments (1) | RELATED TICKERS: AAPL

http://tech.fortune.cnn.com/2013/03/04/apple-zaky-bullish-cross/

Bears  make  money

Bulls  make  money

Pigs  ???

I  just  found  the  above  article  rather  interesting..

How an Internet-trained Apple analyst lost tens of millions of other peoples' money

FORTUNE -- In the late 1990s, an ad agency creative director I'll call Joe Smith to protect his privacy bought several hundred shares of Apple (AAPL) at $60 apiece. Last fall, at age 42, he found himself out of work and increasingly dependent on the value of those shares to make ends meet.

Following the lead of a 33-year-old investment advisor named Andy Zaky who had written that Apple was going to $750 by January and to $1,000 within a year, Smith converted most of his Apple common stock -- more than he should have -- into high-risk Apple call options. When those options expired in the third week of January with Apple trading below $500, they were worth exactly zero. Smith had lost roughly $400,000 and all his Apple shares.

A lot of people lost a lot of money when Apple went into the extended downward slide that just entered its sixth month. And there were plenty of other experts saying all along that the stock was undervalued and ready to bounce. But Smith's story -- and the story of hundreds of other investors who were following Andy Zaky's so-called Apple model portfolio last fall.

1 Comments – Post Your Own

#1) On April 29, 2013 at 2:34 PM, awallejr (76.71) wrote:

Hence my blog post here:

http://caps.fool.com/Blogs/ignore-cramer-regarding-this/789407

And he still gives that advice on other high priced stocks.

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