Options Expert: If I Have To Worry About The Value Of Apple, I Should Just Close Up Shop
Nic Chahine was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.
Nic Chahine, an options pro that specializes in credit spreads, was a guest on Tuesday's Benzinga #PreMarket Prep to discuss Monday's historic market decline.
Discussing Apple Inc. (NASDAQ: AAPL), Chahine suggested that it would take a "real bonehead move" for shares of Apple to move and stay lower. He added that despite Monday's drop, his options in Apple rank as most confident position.
He continued that he isn't a fan of Apple products himself, but that doesn't mean he can't appreciate the stock from a value perspective.
"If I have to worry about the value of Apple then I should just close up shop in this market," Chahine said. "If I cannot risk money on Apple, there is nothing I can risk on."
Switching to credit spread strategies, the pro pointed out that Monday's trading session, which was driven by headlines and sentiment, represents the "enemy" of credit spreads. He added that in a trading session similar to Monday, "all bets are out the window" and new trades are "put on hold" as the market can act irrational.
Shares of Apple quickly dropped to $92.00 on Monday, marking a split-adjusted 52-week low. The stock then rebounded to trade in positive territory, only to dip back into the negative and open at $111.11 on Tuesday -- a higher level than what was seen during Monday's session.
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