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 approaching resistance at the all-time high close from December last year with the Bollinger Bands® pointing higher. It has a RSI strong in the bullish zone with the MACD positive. There is no resistance above 260. Support lower is at 256.50 and 253. Short interest is low under 1%. The stock pays a dividend with an annual yield of 0.40% and has traded ex-dividend since August 11th.

The company is expected to report earnings next on October 30th. The October options chain show biggest open interest at the 240 strike on the put side then at 250 and 235. On the call side it is biggest at 250 then 260 and 240. In the November chain it is biggest at the 210 and 250 calls on the put side and at the 265 and 220 strikes on the call side. Finally, in the December chain it is large and spread from 230 to 215 on the put side, but biggest at 250 and 300 on the call side.

Apple, Ticker: $AAPL

Trade Idea 1: Buy the stock on a move over 260 with a stop at 250.

Trade Idea 2: Buy the stock on a move over 260 and add an October 31 Expiry 250/240 Put Spread ($2.32) while selling the November 280 Calls ($2.39).

Trade Idea 3: Buy the October/November 265 Call Calendar ($5.00) while selling the October 31 Expiry 240 Puts ($1.83).

Trade Idea 4: Buy the December 240/265/280 Call Spread Risk Reversal (60 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 saw the transition from the end of the 3rd Quarter to the 4th Quarter went swimmingly for equity markets as they continued to move higher, piling up new record highs.

Elsewhere, look for Gold to continue the uptrend to new highs while Crude Oil drifts lower in consolidation. The US Dollar Index continues to run sideways in consolidation, while US Treasuries hold higher in their consolidation, teasing of a reversal higher. The Shanghai Composite looks to continue the short term consolidation in the uptrend to new 10 year highs while Emerging Markets also continue their uptrend to new 4 year highs.

The Volatility Index looks to continue to hold at low levels, making life easier for equity markets to the upside. The charts of the SPY, the IWM and the QQQ are all strong on both timeframes, supporting more upside. The SPY and the QQQ added 2 more new all-time highs with the IWM with one to close the week. 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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