Andrew Keene Suggests A Bearish Options Strategy In Apple

, Andrew Keene Of AlphaShark shared with the viewers his technical analysis of

and suggested a bearish options strategy in the name. Keene identified on the daily chart a bullish channel in

and he explained that the stock recently failed to get above $125, which he interprets as a lower high. On the weekly chart the stock has hit the 20 day and the 50 day moving average and it failed to pick up steam and move higher. Keene thinks that

should move lower, but he believes that there is a possibility of a Santa Claus rally, so he wants to use the March options expiration for a bearish bet. With this expiration he also covers earnings release. To make a bearish bet Keene wants to buy the March 115/105/95 put butterfly for $1.50. Specifically he wants to buy the March 115 put, sell two March 105 puts and buy the March 95 put. If the stock trades between $113.50 and $96.5 at the March expiration, he is going to make money. The maximal profit of $8.5 can be achieved if the stock trades at $105.