Apple IncShort
Euphoria at its best a 10 to 55 risk-to-reward ratio trade(Sell)
I have been waiting to publish this as it would seem too dangerous to short or buy put options in a stock that trades in 4 to 5 point ranges and consistently raises the ceiling nearly every day leading up to and past earnings. The average true range of this stock has been way out of proportion and even though the news has been better than expected it technically looks like one of its prior blow-off tops.
There may not be the right day for this currently, but as of Thursday we might get confirmation of the early signs of a turn-around - that is a bearish reversal signal that is confirmed.
Here is the logic, for a 4-week put option trade it would make sense to get long puts and scatter them through different strike prices from 260 to 240 and hold them into December and January.
We declared this trade at 1000 shares, so that we would first preserve capital by risking at most $10,000 and possibly receive a reward of $55,000. There are no refernces for past resistance or overhead supply, but we'll take it at 275 being the last possible price point at which someone would be willing to buy this.
There may not be the right day for this currently, but as of Thursday we might get confirmation of the early signs of a turn-around - that is a bearish reversal signal that is confirmed.
Here is the logic, for a 4-week put option trade it would make sense to get long puts and scatter them through different strike prices from 260 to 240 and hold them into December and January.
We declared this trade at 1000 shares, so that we would first preserve capital by risking at most $10,000 and possibly receive a reward of $55,000. There are no refernces for past resistance or overhead supply, but we'll take it at 275 being the last possible price point at which someone would be willing to buy this.
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