Market Overview

Here's Why Apple Will Be Worth $1 Trillion By The End Of 2017

Here's Why Apple Will Be Worth $1 Trillion By The End Of 2017
Related AAPL
Playing The Tech Rebound With These Leveraged ETFs
What's Next For Apple After Acquiring Shazam?
How To Trade The New Tax Bill (Seeking Alpha)

Many investors are saying it's merely a matter of when, not if, Apple Inc. (NASDAQ: AAPL) will exceed the $1 trillion valuation mark.

The Expert's founder Todd Gordon.

The Strategy

To take advantage of Apple's momentum, Gordon recommends buying the December monthly 180-strike call and sell the December 185-strike call for a maximum profit of $377.

The Thesis

Apple's stock chart has been signaling "very strong" momentum dating back as far as summer 2016, Gordon said during a recent CNBC "Trading Nation" segment. Specifically, by drawing a parallel channel line on Apple's stock, the technical analysis would place Apple's stock within reach of $200 per share by the end of 2017, which would give it a valuation north of $1 trillion.

Apple's stock escaped Thursday's volatile session almost unscathed as opposed to the major indices which saw notable losses, including a triple digit decline in the Dow Jones and a 0.6 percent decline in the Nasdaq composite index.

"Apple's showing some pretty good relative strength in this pretty good pocket of volatility we're seeing here," he said.

However, at $200 per share, the technical analysis tools used by Johnson also implies that Apple's stock would be overbought.

Price Action

Shares of Apple closed Friday at $174.67, which is within reach of its all-time high of $176.24.

Related Links:

Apple's Monster Run Takes Its Market Cap To $900 Billion

Todd Gordon's Amazon Options Trade

Posted-In: Todd Gordon Trading NationCNBC Technicals Options Markets Media Trading Ideas Best of Benzinga


Related Articles (AAPL)

View Comments and Join the Discussion!

Partner Center