TheOptionPlayer.com sets up an Apple, Inc. (NasdaqGS: AAPL) short-term (32-day) option strategy (Based on Monday’s closing quoted bid/ask prices). Login in with a Premium Subscription to view data/images
Why we recommend it:
The difference between funds paid out and received is a $2.00 per share debit maximum risk for this trade. The maximum profit is approximately $3.00 per share (approx. 150%) if Apple stock moves higher prior to the option contract expiration date. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
• As evidenced in the chart below, Apple, Inc. (NasdaqGS: AAPL) stock exploded higher today to lead the market rebound after Goldman Sachs predicted that the iPhone maker, flush with cash it plans to bring back from overseas, could mount a major acquisition.
• During the recent market correction Apple shares have become excessively oversold to its 52-week low. At the current extremely oversold level it is relatively easy for the price to bounce higher.
• The stock market experienced its first correction in several years. Over the past few years “buying dips” has been a successful strategy.
• The published trade selected strike prices to minimize the amount of funds at risk.
• Apple, Inc. shares are setting up for a relatively low risk, high profit opportunity if investors follow through on today’s bullish move after the company announced higher revenue numbers today.
52-Week High: $180.10
52-Week Low: $132.75