4 Trade Ideas for Apple: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Apple, $AAPL, rose from a December bottom, stalling at the end of April. It pulled back from there to a higher low, establishing a symmetrical triangle, at the end of May. It broke through the triangle in August but could not hold up. The reversal “from false moves come fast moves” lower was fast and it stalled at a higher low again. Since then it has built a series of higher lows against resistance, ending at the top on Friday.

The chart shows the RSI pounding along at the 60 line, trying to shift to bullish, with the MACD crossing up and lifting off of zero. There is resistance at 214 and 223 before 232. Support lower comes at 210 and 204 before 200 and 193.50. Short interest is low at 1%. The stock pays a dividend yielding 1.44% and started trading ex-dividend August 9th. The company is expected to report earnings next October 30th. They also have a product launch on Tuesday.

The September 13 options chain shows a broad range centered on a peak at 200. On the call side it is tighter from 210 to 220 and largest at 215. The September monthly options are largest at the 200 put and 210 call strikes. The October monthly options have largest open interest at the 195 put and 220 calls. The November options, the first that cover the next earnings report, have biggest open interest at the 205 puts and 230 calls, with large volume at the 210 and 225 calls also.

Apple, Ticker: $AAPL

Trade Idea 1: Buy the stock on a move over 214.75 with a stop at 210.

Trade Idea 2: Buy the stock on a move over 214.75 and add a September 212.50/207.50 Put Spread ($1.90) while selling the October 230 Calls ($1.32).

Trade Idea 3: Buy the September/October 220 Call Calendar ($2.90) and sell the September 200 Put (75 cents).

Trade Idea 4: Buy the October 195/215/220 Call Spread Risk Reversal (70 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of September in the book, saw equity markets making a resurgence.

Elsewhere look for Gold to pause in its uptrend while Crude Oil slowly drifts lower. The US Dollar Index is also drifting, but to the upside while US Treasuries pullback in their uptrend. The Shanghai Composite and Emerging Markets have both reversed to the upside and look to continue higher.

Volatility has eased and looks to remain very low changing the bias to higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ both broke ranges to issue buy signals while the IWM continues to churn in a wide consolidation. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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