JP Morgan Suggests Buying Risk Reversals in Apple

JP Morgan is out with a research note this morning, where it suggests that traders buy risk reversals on Apple AAPL following the recent CEO change. J.P. Morgan IT Hardware Equity Analyst Mark Moskowitz published a fundamental report on Apple, noting, “We expect the news to create an attractive entry point for investors looking to add or build bigger positions in Apple. While the news could weigh on shares in the near term, we think the company's model is built to last, sustaining a “digital way of life” that other industry participants have yet to rival.” The analysts suggest buying the Dec2011 $395 call and selling the Dec2011 $345 put for a net credit of $1.35. 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.