Tradespoon Founder Vlad Karpel gave a short fundamental analysis Apple Inc. AAPL when he was a guest on Benzinga’s #PreMarket Prep earlier this week.
Tradespoon looks at both long-term fundamental and technical analyses and ranks stocks on a scale of one to 10, Karpel explained. He said that Tradespoon has ranked Apple a 10 for the past couple of months using the company’s quant model strategies.
“We look at the momentum, and we look at the earnings consistency. Apple has beat earnings estimates for the past two quarters,” he said. “It all depends on the earnings. If they miss the earnings estimates, then Apple will sell off.”
But Karpel said that Tradespoon believes there is a definitely demand for Apple products after most recent launch and huge lines of people that waiting to get the new iPhone.
“I think that momentum will carry through the earnings season,” he said. “But again, always hedge yourself.”
Karpel also spoke briefly about Alibaba Group Holding Ltd BABA, which he said has been volatile.
“Selling out of the money options is definitely a strategy,” he said.
But Karpel warned that investors might not want to go strangle. Instead, he said it could be a good idea to do an iron condor, and again, make sure the investors hedge themselves.
Check out his full interview here:
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