EOT trade alert September 5, 2014
September 5, 2014
Trade Alert:
Buy AAPL October 17th 2014 $105 Calls at $1.50 or better
Company Background:
Apple (AAPL) shouldn’t need an introduction… this tech giant is the world’s largest company by market capitalization.
Short-Term Catalyst:
It’s no secret what the catalyst is for Apple… they’re about to launch the iPhone 6.
The Apple event on September 9th will officially unveil the new iPhone and there could be some new stuff like the iWatch and iWallet.
Needless to say, expectations for the new iPhone are high. And the reaction to the new product will be a major factor in the stock price in the weeks ahead.
The best thing is AAPL’s stock just had its worst day in more than six month. The 4% selloff was sparked by Samsung unveiling a new tablet and a virtual reality headset that will be used with Facebook’s (FB) Oculus.
In short, the recent drop in AAPL looks like a great time to buy some call options.
Trade Details:
| Underlying Stock Symbol: | AAPL |
| Current Bid-Ask Price: | $1.40 – $1.41 |
| Option “Buy Up To” Price: | $1.50 |
| Break-Even On Stock At Expiration: | $106.50 |
| Maximum Risk Per Contract: | $150 |
Exit Strategy:
AAPL is trading at $98.90 per share. Resistance levels will be at $105.00 and again at $110.00. Remember, we want this stock to move higher. Support levels will be at $95.00 and $94.00. 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
