EOT Trade Alert – September 23, 2015
Trade Alert:
Buy AAPL November 20th 2015 $120.00 Calls at $3.20 or better
Company Background:
Apple $AAPL leads the world in innovation with iPhone, iPad, Mac, Apple Watch, iOS, OS X, and more.
Short-Term Catalyst:
Apple’s stock has decreased since the beginning of 2015. But one thing we know about AAPL stock is it doesn’t stay down for long.
We all know Apple dominates the smart phone and tablet market. And they’re getting ready to launch new iPhones… the iPhone 6s and iPhone 6s Plus.
We have all walked by an Apple store when they release a new phone and see the lines of people waiting to be the first to own the latest iPhone. They’re projecting first-weekend sales to eclipse the 10 million units the iPhone 6 sold in the first weekend.
What’s more, their new Apple Watch is picking up steam heading into the important holiday shopping season. Needless to say, Apple sales will be soaring this upcoming fall through the holiday season.
We’re expecting these new product launches to light a fire under their stock price in the weeks ahead. I wouldn’t be surprised to see the stock climb back up to its high of around $133 in short order.
What’s more, the long term price action is in a bullish trend. As you can see in the chart below, AAPL pulled back to support of the uptrend connecting the previous swing lows over the last two years.
AAPL is up 7.43% just this month. I believe we will see further gains as Apple releases its new products. Let’s grab call options on AAPL to profit from this bullish technical setup.
Trade Details:
| Underlying Stock Symbol: | AAPL |
| Current Bid-Ask Price: | $3.00 – $3.05 |
| Option “Buy Up To” Price: | $3.20 |
| Break-Even On Stock At Expiration: | $123.20 |
| Maximum Risk Per Contract: | $320 |
Exit Strategy:
AAPL is trading at $114.15 per share. Resistance levels will be at $120.00 and again at $130.00. Remember, we want this stock to move higher. Support levels will be at $109.00 and $105.00. Conservative investors should look to exit at the first support or resistance level. Aggressive investors may want to hold for a bigger move.
Chart:
Category: EOT Trade Alert
