Apple, Inc (NasdaqGS:AAPL) Weekly Option Play
Apple, Inc. Bear Call Credit Spread (NasdaqGS: AAPL)
TheOptionPlayer.com analyzes an Apple, Inc. short-term (7-day) bullish option strategy. Investors could simultaneously:
Sell the one-week end of November expiration AAPL $360 put for 1.96 (yesterday's closing price)
AND
Buy the one-week end of November $355 put at 1.39 (yesterday's close)
The difference between funds received and paid out is a .57 credit (we are risking $5.00) which we keep if the AAPL ends above $360 on November 25th, but immediately exit the position if there is a higher end-of-day closing price.
Why we recommend it: Apple (NasdaqGS: AAPL) recently released earnings and revenue results that missed analyst expectations and the stock price dropped 10% from its recent 52-week high. Also as noted in the daily chart below, the stock is becoming oversold as traders started selling shares to lock in profits. But note that the company surpassed its own guidance for the fourth quarter and even issued guidance above Wall Street expectations for the current quarter. Apple stock price has stayed above the $360 level since the end of September. At the very least there is a high probability that the price will remain above the target for another 7 days.
