John Carter 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.
Simpler Trading President John Carter told Benzinga #PreMarket Prep listeners that he likes Apple Inc. AAPL from the short side, particularly in this volatile market. Carter based his opinion on a few factors, noting that Apple broke lower before the market. As of Monday's closing price, Apple has come off its all-time high by 16 percent, while the Nasdaq is lower by roughly 10 percent. That means that in a lower market, Apple will likely lead the charge.
Additionally, with high volatility, Carter likes the fact that Apple is a liquid stock with tight bid/ask spreads. On the options side, Carter reminded listeners that they want to get in and out of stocks "fairly quickly." In Apple, that means that traders can buy puts and get out of them near fair market prices.
"I can't imagine that this is a V-shaped bottom," Carter added. In total, Carter recommended that traders keep it "simple" in this market with "lightly bearish positions." He said that in addition to Apple, he will trade four other stocks and the index futures. Those stocks - Tesla Motors Inc TSLA, Amazon.com, Inc. AMZN, Google Inc GOOG, and Netflix, Inc. NFLX.
In premarket trading on Tuesday, Apple is indicated 2.6 percent lower, trading below $110.
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