J.P. Morgan Suggests Buying Calls on Apple

J.P. Morgan is out with a research note this morning, where it suggests that traders buy calls on Apple AAPL ahead of earnings. J.P. Morgan's IT Hardware Equity Analyst Mark Moskowitz published a fundamental report on Apple on 14 July 2011. The report states: “We reiterate our Overweight rating on Apple and are establishing a Dec-12 price target of $450 (unchanged from Dec-11 target). Our call is that the wow factor, i.e., extraordinary upside to consensus estimates, is about to return to the model.” He added that he thinks this dynamic should lift the stock higher in coming days, as he expects iPhone and iPad units to exhibit increasing momentum in the June quarter print. J.P. Morgan suggests buying the August $365 call for $13.15. Apple Inc. designs, manufactures and markets a range of personal computers, mobile communication and media devices, and portable digital music players, and sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications.