Trading Steve Jobs' Leave Of Absence (AAPL, DELL)

As Benzinga readers are already aware, Steve Jobs is taking a medical leave of absence, and the future performance of Apple AAPL stock is uncertain. Chief Operating Officer Tim Cook will carry out everyday operations in Jobs' absence. According to Reuters, research analyst Daniel Hurst asserts that Apple is a deep-rooted team of individuals, and the future of the company does not rest solely with Steve Jobs. Hurst says that there is no operational risk to Apple, but the investing public will perceive the news as harmful for Apple. However, analyst Benedict Evans says that looking forward, Apple will be negatively impacted by his absence because Jobs served as the final quality control for a potential product, according to the article. It is important to note that Jobs will still be present in strategic decisions, which may not affect the quality control issue whatsoever. During Jobs' previous leave of absence, the stock price decreased at first, but increased dramatically by the end of the absence period. In response to Jobs' announcement, after-hours trading has shown Apple trading for $330.25, down from Friday's close of $348.48. At last check in pre-market trading, Apple is trading at $332.87, 3.7% lower than Friday's close. To trade this news, consider taking a long position in Apple stock. One might also consider taking a long position in LEAP call options, in attempt to benefit from a possible rebound over a longer period of time. If history tends to repeat itself, it is possible that Apple stock will rise again despite this short term setback. However, because the length of Jobs' absence is undetermined, it may continue to place downward pressure on the stock price. Investors who believe this is the more likely scenario may consider a short position in Apple, long put options, or possibly a stake in one of Apple's competitors, Dell DELL. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that your own due diligence and consult a certified financial professional for personalized advice about your financial situation.