AAPL Don’t Take A Bite Just Yet

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If you still believe in charts after more than 3 years of centrally planned market manipulation, than I think you need to stay away from AAPL for another few trading session.   It's not a  perfect setup but AAPL has formed a head and shoulders over the last few weeks which means the risk for more downside is great.

If you want to play this move, lets hope for a bounce tomorrow early.  Then step in and buy the puts that expire tomorrow as AAPL options premium will be minimum.  You could move out to next weeks puts  but in my view they will be too expensive.  I don't think AAPL will fall below $550, if it does than I will be looking for $500 puts.  So yes you can risk next weeks $525 puts, if we break $550 those should be a nice profit.  I think the play is for a bounce tomorrow early and then a fall the rest of the day into the close, meaning buy weekly put well after the open.

 

 

 

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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