Kevin Kelly was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

Speaking to Benzinga during Tuesday’s #PreMarket Prep, Recon Capital Chief Investment Officer Kevin Kelly commented on Apple Inc.’s AAPL 3.04% move to raise capital in the oversees bond market.

Kelly noted that Apple’s dividend is “low” given the fact that the company holds about $30 in cash per share. He added that Apple’s decision to seek financing in the international debt market serves as a sign that a major catalyst in the form of a dividend or additional buybacks is imminent.

As such, Kelly added that “the low is in right now” –- referring to the $120 to $124 per share level.

Kelly suggested that a strategy investors could consider is turning shares of Apple in to an “iBond” by selling a $120 put and collecting a premium. he suggested that shares of Apple could climb to new all-time highs as Apple starts to put its capital “to work.”

Shares of Apple traded recenlty at $126.59, up 1.3 percent.

Latest Ratings for AAPL


Date Firm Action From To
Apr 2015 Canaccord Genuity Maintains Buy
Apr 2015 Susquehanna Maintains Positive
Apr 2015 Jefferies Maintains Hold

 

 

Read full article: http://www.benzinga.com/analyst-ratings/analyst-color/15/03/5333387/ibond-the-next-big-catalyst-for-apple