- Apple is in the headlines today as the stock makes a new all time high
- Defined risk ways to play for what could come next
Let's look at the 3 month and 1 month expected moves, via OptionsAI technology:
Ways to Play
The 1 month chart is of particular interest as the stock is just above the top of its 1 week range, while the bearish consensus 1 month out is to about the bottom of that range, where the stock was last week before this move to all time highs. That's informative for anyone looking to play for a quick pullback in shares (lower) or those looking for Apple to go a bit sideways after making a new high. Here is an example of a neutral trade target, an Iron Condor expiring July 17th, from OptionsAI:. Note the lower end of the range near last week's price:
That's a realistic range for those looking for AAPL To pause and decent risk reward that the stock stays within the 335 to 375 band.
Now for those looking for a quick pullback. One could either fade the move by selling a call spread, or play for a sharp pullback by buying a put spread. Here's a bearish price target with both trades featured:
Here's how each look on the chart:
First the 355/335 put spread:
And the short 355/375 call spread:
Both trades offer their own strengths, trading probability for risk/reward and payout. So which type of "bearish" you are would determine which way to play, either fade the move (selling the call spread) or outright playing for a quick pullback (buying a put spread).
As far as bullish breakout plays I think one needs to be pretty conservative. Apple isn't the type of stock that's going to suddenly short squeeze higher. Call spreads to $375 short term and $400 longer term could at least take advantage of selling an upside call.
See a part of OptionsAI technology with your own price target and demo trades in AAPL HERE