Financial Analyst Recommends Iron Condor for Apple Earnings Play

Anne-Marie Baiynd, author and financial analyst, recommended playing Apple Inc. AAPL earnings with a long iron condor trade. While on Benzinga’s #PreMarket Prep, Baiynd said that Apple typically expands its range following earnings announcements, making the iron condor a non-directional trade on that theme. 

 

Since the question in Baiynd’s mind is not whether Apple’s range will expand, but how, Baiynd recommended the February 6th expiration with a $5-wide spread. Over the past three months, Apple has traded within a $10 range between $105 and $115.

 

If forced to pick a direction, Baiynd is in the bullish camp, but notes that it may take a few days before Apple starts a march higher. That’s where the longer-duration will help traders.

 

Check out the full interview below:

 

 

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for a live, interactive morning show with veteran traders and featured finance industry experts ready to answer your questions for the trading day.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Trading IdeasInterviewAnne-Marie Baiynd
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!