Here's Where This Options Strategist is 'Comfortable' Going Long Apple

Nic Chahine 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.

Create Income With Options Spreads Author Nic Chahine told Benzinga's #PreMarket Prep that he is comfortable going long Apple Inc. AAPL at levels around $110. Chahine – who said he was already long the stock from its dip below the $112.50 level – would happily buy more if the price got "hammered." However, he indicated that he does not find that scenario highly probable.

Technically, Chahine said that there should be support for the stock at various levels between $110 and $115. He also sees resistance above the current price at $125. For the near term, Chahine questioned whether the stock had enough catalysts to move it either way.

Chahine recommended that in this climate, traders should not "chase" risk. The options trader said he prefers put credit spreads as a way to define his risk, as well as the timeline for taking that risk. However, doing so also caps his gains.

On Apple's long-term prospects, Chahine said that the company is "printing money" and in more than just the iPhone division. "It's a beast," he added saying that there is not an Apple-centric issue that could break the company.

Instead, if traders are worried about Apple moving lower, Chahine suggested they should be concerned with the market as a whole as well. "If I am worried about Apple, I should be worried about everything," he concluded.