4 Trade Ideas for Apple: Bonus Idea

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

Apple, $AAPL, comes into the week moving up towards resistance. This is after a pullback that retraced over 38.2% of the post pandemic move and dropped over 29% from its top found support in June and reversed. The Bollinger Bands® are opening higher to allow a move with the RSI rising back into the bullish zone and the MACD positive and moving higher. There is resistance at 151.50 and 157 then 163.75 and 166.50 before 168.50 and 171.50. Support lower comes at 147.50 and 144.75.

Short interest is low under 1%. The stock pays a dividend with an annual yield of 0.61% and has been trading ex-dividend since May 6th. The company is expected to report earnings next on July 28th after the close. The July 29 Expiry options chains shows an expected move of $9.35 by expiry or 6.23%. The typical price move is less than that at just over 4%.

The open interest is biggest at the 140 then 145 put and then 150 call but also large at the 145 and 155 through 160 calls. In the August chain the biggest open interest is also at the 145 put and call, with big size at the 150 strikes and then higher at 160 on the call side. In the September chain the open interest is spread from 125 to 150 on the put side and builds from 125 to a peak at 160 the tails to 190 on the call side.

Apple, Ticker: $AAPL

Trade Idea 1: Buy the stock on a move over 151.50 with a stop at 145.

Trade Idea 2: Buy the stock on a move over 151.50 and add a July 29 Expiry 145/140 Put Spread ($1.60) and sell the August 162.50 Call (~$1.40).

Trade Idea 3: Buy the July 29/September 160 Call Calendar ($3.05) while selling the July 29 Expiry 140 Put ($1.45).

Trade Idea 4: Buy the September 135/155/165 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 July Options Expiration in the books, saw equity markets showed some resilience with a rebound from an ugly start to finish only slightly lower as 2nd Quarter earnings season opens.

Elsewhere look for Gold to continue its short term downturn while Crude Oil consolidates in an uptrend. The US Dollar Index continues in an uptrend nearing 20 year highs while US Treasuries consolidate in their downtrend. The Shanghai Composite continues a short term downward move while Emerging Markets trend lower.

The Volatility Index looks to remain slightly elevated but moderating taking some of the pressure off equity markets. Their charts have moved to consolidation on both the shorter and longer timeframe, with the indexes exhibiting a very strong correlation. On the longer timeframe the SPY remains the strongest with the least retracement and smallest pullback from the highs with the QQQ next by virtue of its distance above the 200 week SMA and then the IWM. 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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