Market Overview

Options Outlook For The Week Of February 24: Apple Still A No-Touch

Options Outlook For The Week Of February 24: Apple Still A No-Touch

Noteworthy points for this week:
Markets recovered but don't expect strong comment from the bulls.

  • The Google (NASDAQ: GOOG) play last week was to sell iron condors and buy in the money spreads for premium arbitrage. Was a nice win for traders that took advantage.
  • Apple (NASDAQ: AAPL) was a no touch and is still hated by the markets. And, it has not been able to reverse selling in one session. Sellers may lose confidence as the issue approaches the $505.00 level. That's where the company (and the likes of Icahn) defended its own stock on the last dip. So soon some credit put spreads should work for those paying close attention.
  • Priceline (NASDAQ: PCLN): The best earnings plays are after the earnings and not into them. Trying to guess which way the markets will react to earnings is a coin flip at best, regardless of company quarter performance. The spread went to max gain without a sweat.
  • Amazon (NASDAQ: AMZN) showed some promise at the open only, but it couldn't hold and had another weak day. Keep an eye on a credit put spread.
  • LinkedIn (NYSE: LNKD): Ideal entry target was around$180.00. If it shows stability here, traders might want to take credit put spreads in the issue.
  • Other tickers in this week's outlook: Mastercard (NYSE: MA), Equinix (NASDAQ: EQIX), Ralph Lauren (NYSE: RL), VMware (NYSE: VMW), Panera (NASDAQ: PNRA), Chipotle Mexican Grill (NYSE: CMG), BlackRock (NYSE: BLK), Goldman Sachs (NYSE: GS), Intuitive Surgical (NASDAQ: ISRG), CF Industries (NYSE: CF).

Check out the video below for a recap of this week's outlook:

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