4 Trade Ideas for Apple: Bonus Idea

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

Apple, $AAPL, made a top at the start of September after rising from the pandemic low. It pulled back, retracing 38.2% of that move later in the month, and bounced. It has remained in that range, with the exception of a failed 4 day break out in January, ever since. There has been rising trend support, creating a massive ascending triangle and a break of the triangle gives a target move of $35. If it breaks to the upside that would be to 173.50.

The RSI is rising into the bullish zone with the MACD crossed up and positive as it moves higher. The Bollinger Bands® have started to open as price moves up off of a touch at the 200 day SMA. There is resistance at 131.50 and 135 then 138.50 and 143.50. Support lower comes at 127 and 125 then 123 before 120 and 117. Short interest is low under 1%. The stock pays a dividend with an annual yield of 0.67% and has been trading ex-dividend since May 7th. The company is expected to report earnings next on July 28th after the close.

The July options chain shows big open interest at the $5 strikes from 110 to a peak at 130 and staying big until 140 on the put side. On the call side it is also focused at the 5’s and much bigger, growing from 120 to a peak at 135 and staying big until 150. The July 30 chain is the first to cover the earnings event and shows biggest open interest at the 130 put and 135 call strikes. The August chain sees open interest build from 100 to a peak at 125 on the put side and focused from 125 to 150, biggest at 140, on the call side. September options are notable for the extremely large open interest at the 150 call strike.

Apple, Ticker: $AAPL

Trade Idea 1: Buy the stock on a move over 132.50 with a stop at 127.

Trade Idea 2: Buy the stock on a move over 132.50 and add a July 30 Expiry 130/125 Put Spread ($1.90) while selling the August 140 Call ($1.90).

Trade Idea 3: Buy the July/August 140 Call Calendar ($1.50) selling the July 120 Puts (60 cents).

Trade Idea 4: Buy the September 120/135/150 Call Spread Risk Reversal (65 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 June options expiration in the books, saw equity markets showed some weakness, especially outside of the Nasdaq.

Elsewhere look for Gold to continue its short term pullback while Crude Oil pauses in its uptrend. The US Dollar Index is ripping to the upside short term while US Treasuries drive higher as well. The Shanghai Composite looks to continue to consolidate while Emerging Markets pullback in consolidation.

The Volatility Index looks to remain low, but no longer very low, removing the wind at the backs of the equity markets. Their charts remain strong on the longer timeframe, with the QQQ rising while the SPY and IWM hold in consolidation. On the shorter timeframe both the IWM and SPY have given back some ground and look a bit weakened as the QQQ holds at the highs. 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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