Apple Earnings Trade Ideas

• Posted by Greg Harmon
• on July 23rd, 2013

These trade ideas were released to subscribers just before 1:00pm today

Apple reports tonight as well. Heading into the report it had completed a bullish Gartley and retraced 61.8% of the pattern before failing. This was at the confluence of the 50 and 100 day SMA’s and makes the 435 level very important. The RSI is drifting lower after barely crossing the mid line, not getting bullish and the MACD is leveling on the signal line with the histogram falling. This all gives a bias lower. There is support at 416-418 and then at 385-390. Below that there is noise until the 340-345 area for next real support. Resistance higher over 435 is found at 454 and then 463 before 477. The reaction to the last 6 earnings reports has been a move of about 5.43% on average or $23 making for an expected range of 400 to 446. The at-the money July weekly Straddles suggest a slightly smaller $20 move by Expiry Friday with Implied Volatility at 61% above the August at 30%. Some sizeable weekly 460/470 Call Spreads have traded on the offer side and the largest Open Interest this week is at the 400 Put by over 2:1 on any other strike, but similar at the 440 and 460 Calls.

Trade Idea 1: Buy the July 420/410 Put Spread for $4.00.

Trade Idea 2: Buy the July 420/410 Put Spread and sell the July 395/385 Put Spread for $3.00.

Trade Idea 3: Buy the July/August02 400 Put Calendar for $1.00.

Trade Idea 4: Sell the July 400/450 Strangle for a $3.50 credit.

Trade Idea 5: Sell the July 400/450 Strangle and buy the August 400/450 Strangle for $5.00.

I like #5 and #2 best

Join the Dragonfly Capital Views Premium Membership

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2013 Expiry and sign up here.

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.

blog comments powered by Disqus