AAPL Buy or Short Opportunity If You're Late to the Party
Updated
We've been riding the Apple run-up train ever since late January, with arguably the cleanest uptrend since Summer 2015 that made your average weekly call option trader a boatload of cash. While we've been redesigning our site heavily due to customer feedback, we've been executing our trades on the side, and AAPL is no exception.
But be forewarned, no trend lasts forever, especially when viewing daily chart price action. AAPL's uptrend has held strong with very little sign of weakness due to the "Trump Trade", but our trailing stop is moving upward knowing we're due for a close at a rather substantial profit soon.
But you may ask "What if I want to buy AAPL now?". Well, I'd tell you to have patience. Why? Because, when utilizing our system we take into account supply/demand of an equity at a certain price, as according our chart, we've established one such support/resistance point at $140.27. If AAPL closes above that price point without any reversal signs given, we'd probably at least trade a bull option spread. I wouldn't buy the stock outright at that price simply because of AAPL's valuation being many times earnings, and the substantial downside risk and possible correction to come.
Even more to the downside, there's likely going to be a down-fractal support point formed at the $137.05 mark, and if the price corrects to the level or below, look to buy some deep ITM puts or trade a bearish skip-strike butterfly (Broken-Wing) Option Spread.
One other point to make is earnings happening next month. AAPL is one of the highest risk equities to trade during earnings, and from personal experience, can make or break your trade if you're just now coming in on a big move like this one from the past couple of months.
But be forewarned, no trend lasts forever, especially when viewing daily chart price action. AAPL's uptrend has held strong with very little sign of weakness due to the "Trump Trade", but our trailing stop is moving upward knowing we're due for a close at a rather substantial profit soon.
But you may ask "What if I want to buy AAPL now?". Well, I'd tell you to have patience. Why? Because, when utilizing our system we take into account supply/demand of an equity at a certain price, as according our chart, we've established one such support/resistance point at $140.27. If AAPL closes above that price point without any reversal signs given, we'd probably at least trade a bull option spread. I wouldn't buy the stock outright at that price simply because of AAPL's valuation being many times earnings, and the substantial downside risk and possible correction to come.
Even more to the downside, there's likely going to be a down-fractal support point formed at the $137.05 mark, and if the price corrects to the level or below, look to buy some deep ITM puts or trade a bearish skip-strike butterfly (Broken-Wing) Option Spread.
One other point to make is earnings happening next month. AAPL is one of the highest risk equities to trade during earnings, and from personal experience, can make or break your trade if you're just now coming in on a big move like this one from the past couple of months.
Note
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