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Dan Nathan Is Thinking About Protection In Apple


CNBC Options Action's Dan Nathan spoke on the show about a huge rally in Apple Inc. (NASDAQ: AAPL) in the last month.

The stock gained $135 billion in market cap in the last month and on the year it gained $280 billion, which is an equivalent of the market cap of Alibaba Group Holding Ltd (NYSE: BABA). Nathan thinks that there is no reason to be bearish on Apple but he would think about protection because the options are cheap at the moment. The rally had an impact on Apple's implied volatility, which is at its 52-week lows.

Nathan suggested that traders with a long position should buy the January 110 put options for $2.20. They would get protection below $107.80, which is approximately 2 percent of the underlying.


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