How one Apple bull plans to make 174 percent by betting on the tech giant

“Apple’s meteoric climb is far from over, says one trader who is betting that the stock will continue its rally,” Annie Pei reports for CNBC.

“While Tuesday’s snowstorm and this week’s Federal Reserve meeting could disrupt markets, recent movement in the stock could be pointing to more upsides for Apple, according to Todd Gordon of TradingAnalysis.com,” Pei reports. “While a long-term chart of Apple shows that the tech giant has broken through “resistance” at $130, which Apple hit mid-2015, Gordon is more interested in one particular candlestick indicator from last week. Gordon is looking specifically at Apple’s trading day from March 9, when Apple slipped down to around $137 but then managed to regain its losses and close back around $139.”

“Gordon said Monday on CNBC, ‘That’s a sign of underlying strength,'” Pei reports. “To make a bullish trade, Gordon is buying the April 7 weekly 140-strike calls and selling the April 7 weekly 142-strike calls for a total of 73 cents, or $73 per options spread.”

Read more in the full article here.

MacDailyNews Take: Good luck, Todd! But, for long-term Apple investors, as Jim Cramer says, “Own it, don’t trade it.”

2 Comments

  1. Profit taking will happen soon. It is inevitable. AAPL has been bouncing around 139 for a while now. My guess is that the sharks will start selling it off.

    1. It will be a pity if the sharks do start selling off their stock. The FANG stocks seem to stay strong even when they have so-so quarters and their P/Es are much higher than Apple’s P/E. It could be that more cowards own Apple than those other stock. Look how strong Microsoft stays and it’s fundamentals are certainly not better than Apple’s fundamentals.

      I think Apple’s weakness comes from Tim Cook and lack of confidence in his position. I’m only guessing at this. I’m fine with him being the CEO but sometimes I really don’t quite understand why Apple does the things it does. Maybe Apple can’t tip its hand to reveal what’s happening in the pipeline so shareholders are always kept in the dark. If there’s any sell-off of Apple stock at this point, I’ll think that’s the reason. Why doesn’t anyone sell off Amazon, Facebook or Alphabet? They just stay strong as investors keep piling in every single quarter. Grrrrr.

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