4 Trade Ideas for Apple: Bonus Idea

Apple, $AAPLWealth Strength IndexAAPL is Extremely Up and trending Up, rose from a December bottom, stalling at the end of April. It pulled back from there to a higher low, establishing a symmetrical triangle, at the end of May. It broke through the triangle in August but could not hold up. The reversal “from false moves come fast moves” lower was fast and it stalled at a higher low again. Since then it has built a series of higher lows against resistance, ending at the top on Friday.

The chart shows the RSI pounding along at the 60 line, trying to shift to bullish, with the MACD crossing up and lifting off of zero. There is resistance at 214 and 223 before 232. Support lower comes at 210 and 204 before 200 and 193.50. Short interest is low at 1%. The stock pays a dividend yielding 1.44% and started trading ex-dividend August 9th. The company is expected to report earnings next October 30th. They also have a product launch on Tuesday.

The September 13 options chain shows a broad range centered on a peak at 200. On the call side it is tighter from 210 to 220 and largest at 215. The September monthly options are largest at the 200 put and 210 call strikes. The October monthly options have largest open interest at the 195 put and 220 calls. The November options, the first that cover the next earnings report, have biggest open interest at the 205 puts and 230 calls, with large volume at the 210 and 225 calls also.

Apple, Ticker: $AAPLWealth Strength IndexAAPL is Extremely Up and trending Up

Trade Idea 1: Buy the stock on a move over 214.75 with a stop at 210.

Trade Idea 2: Buy the stock on a move over 214.75 and add a September 212.50/207.50 Put Spread ($1.90) while selling the October 230 Calls ($1.32).

Trade Idea 3: Buy the September/October 220 Call Calendar ($2.90) and sell the September 200 Put (75 cents).

Trade Idea 4: Buy the October 195/215/220 Call Spread Risk Reversal (70 cents).

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