STOCK NAME – APPLE INC
TICKER – AAPL
MY OPINION (JUST MY THOUGHTS, NOT ADVICE) – I think the run is done, I’m calling for a pullback
STRATEGY USED – Sell a vertical call spread
My Thoughts On
Apple (AAPL) reported earning, and the stock is now up over 5% since yesterday. I think I will use this pop to my advantage, and sell the news.
The good news that Apple reported is probably the reason that Apple stock quote today is so high. It is up and above the upper Bollinger Band
Fibonacci Pivot Points
The R3 is 202.43. My opinion is that it won’t stay above this level very long, if it even gets up there
The RSI is at 69, and looks like it is having a hard time getting over 70. It is my opinion that AAPL is overbought right now, and I expect the sellers to come in soon.
The MACD for AAPL is showing a buy signal right now.
Like the MACD above, the Stochastic is also showing a buy signal.
You may wonder why I am bearish with all these BUY signals. I think all this good news is baked in, in this case. My thinking is that all the smart money already bought. So what I’m going to do is to sell into strength.
I sold the 202.5 / 207.5 Call Spread for Aug 2016 expiration, for $1.36 (max profit= $136, max loss = 364). I’m not recommending that you do it or anything, I’m just letting you know what I did. You may lose money, buyer.