Market Overview

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

Share:
Here's Why Apple Will Be Worth $1 Trillion By The End Of 2017
Related AAPL
Quantifying Quality With An iShares ETF
Raymond James Lays Out 3 Reasons To To Stay On Apple's Sidelines... For Now
Apple FQ2: What Guidance Tells Us (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

TradingAnalysis.com'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!