AAPL , Advanced Trade Setup – Apple Spread Option Analysis for NASDAQ:AAPL by VirlVideo

đ We are looking to position ourselves into Apple ( AAPL ) for short term DOWNSIDE MOVEMENT.
– We will be most likely Selling Calls to benefit from this position. We would also consider a Bear-Call Spreads, or Bear-Put Spreads.
(These are types of
spread options, sometimes referred to as Vertical Spreads, and Credit/Debit Spreads. If you have never heard of these, they are similar
to options, but lower risk with a set max profit. These differ from traditional Calls & Puts, by not needing to move for them to close
successfully. If we use apple as an example, we are going to do a Bear-Call Spread for $164, with a day expiration. If apple is $164 on
the dot, or less we close the trade with max profit.
– đšđŒâđ« These Spreads, both the Bear-Put & Bear-Call are placed the same way. You will sell a Put or Call for the lower stock value, and at
the same time buy a Put or Call respectively, for the higher value stock price.) For this route, we are doing a
Bear- Call Spread for August 26, for $162.5 – $165. âWe will be closing the position, or putting a Stop-Loss to
close in profit once the trade is at %50 ROI
– For those deciding to go the Option Puts, we suggest going 30 days out, @ $162.5-$165 Strike.
đŁïž For our route, we will be SELLING CALLS for the Strike Prices of $165 & $ 162.5, both EXPIRING August 26th .
đBREAKDOWN
We feel that AAPL will be peaking and rounding out this weekend. We can see this happening Wednesday-Friday, but we are so confident in this trade succeeding, we will be putting half our position in on Monday.
Apple we think has a high probability to fall a minimum of 4.8% over the next 5 weeks, with it initiating this week.
With September being the worst trading month of the year, we can see this precipitating well longer than the 5 weeks we stated, and going further than our nearly 5% predicted drop.
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