Wednesday, December 19, 2012

AAPL Update- Possible Trade

If you have the stomach for this, there's a possible Put trade (Short AAPL), although I think it has risks and may be short lived, thus the need for leverage. At some point soon, AAPL should be a nice long trade, I think it needs to pullback 1 more time first though.

Let me show you on the charts, it's the only way to understand the opportunity and risk.

 AAPL 1 min is clearly negative

 As is the 5 min

 If we zoom in on local trade, the 10 min is negative

 and the 15 min is negative, this is where there may be a short term PUT (short AAPL) options trade, here's the risk....

 Scale out the 15 min chart and it takes on a much different longer term look, VERY bullish here, that doesn't mean a quick Put can't make money.

And the 30 min which I have been talking about as having had built a longer term area of support, this is where I'm most interested in AAPL, a small pullback and long the stock.

However in the near term a Put trade may work very well, it' just not without risks as you can see.

I'll probably look at a Jan Put in the money for the options model portfolio, but it will be speculative in size and any remaining open call positions (1) will be closed.

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