Why Kevin Simpson and Jim Lebenthal Are Buying More Apple Stock

Apple Stock Amidst Market Volatility

• 🍎 Apple stock is down 26% from its 52-week high, making it a subject of intense market debate.
• ⚠️ Jim Cramer, known for his "own, don't trade Apple" mantra, is reportedly wavering due to trade war concerns, signaling a potential shift in market sentiment.
• 📈 Despite potential further declines, the current price point is seen as an attractive entry for traders.

Trading Strategy for Apple

• 💡 One trader shares a strategy of trading Apple actively, having sold out 11 times in 13 years, most recently selling at $247.50 and buying back in at $177.
• 💰 This strategy includes selling calls to generate income, such as writing a $215 call expiring in early May for $1.30.
• 📉 The potential for Apple's earnings to drop to $5 per share with a multiple of 25, leading to a $125 stock price, is acknowledged as a worst-case scenario.

Long-Term Investment Perspective

• 🎯 The consensus among long-term investors is to buy great companies at good prices, a principle applied to Apple's current valuation.
• 🚀 Apple is considered a great company that is now available at a very good price, offering an opportunity to upgrade portfolios during a market downturn.
• 🌍 While acknowledging the potential impact of the China trade war, the belief is that Apple will thrive on the other side of any downturn.

Diversification and Other Investments

• 📊 Beyond Apple, other companies are being bought, including Coupang, WAB Tech, and AstraZeneca.
• 💊 Pharmaceutical stocks like AstraZeneca, AbbVie, and Vertex are seen as attractive due to being repriced for significant danger, despite ongoing trade war uncertainties.
• 📈 Incremental additions to positions are favored over lump-sum investments, especially in uncertain environments, with a focus on a one-year or longer time horizon.