Anne-Marie Baiynd On Apple: You Gotta Think About Margin Calls!

Anne-Marie Baiynd 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.

Baiynd, author of "The Trading Book" and Financial Analyst, went over a few issues and stocks in the show. Among them, the expert looked into Apple Inc. AAPL, which lost more than 11 percent over the past 5 trading days, but still is a cash cow.

Remember, the analyst warns, “when you start drifting this low –and we’ve got a lot of people that are bullish, you have got to think about margin calls; or spaces that are people getting close to the margin call, or they got to sell their winners to cover for their losers.”

Consequently, she adds, “in these big spaces, we have thrown out the baby with the bathwater because we have to; it’s where the buyer or the trader gets in position,” either closing to cover or getting called on margin.

Baiynd then goes on to assure Apple is definitely on her radar and looking attractive, and not broken, like many have said. However, the problem is, she says, Apple “had dropped through a congestion space of $104,” which she expected it to hold. If it gets down to $97 or $98, the expert assures she has got “a trigger […] to make a decision” on the go. However, she notes, “that really does look like it is getting to be in a very pretty Buy zone.”

Shares of Apple are down 2.2 percent on Monday afternoon.