Hey Traders,

There’s no doubt things are changing …

And if you need proof, just look to the mega caps.

The biggest, strongest, market favorites are starting to show some cracks.

Earlier this week, I noticed an interesting Big Money move on a cult favorite tech stock …

What is Smart Money predicting next for one of the biggest names on the market?

AAPL Pie

AAPL has had a blockbuster 2020 and 2021, with the shares rocketing higher …

But after tapping a high of $182 during the first trading days of 2022, the tech behemoth has started to show some cracks.

After an attempt to once again breach the $180 mark in late March, AAPL has had a tough go, hit by broadmarket headwinds targeting growth and tech stocks …

On Tuesday, the day this Big Money trade crossed the tape, AAPL shed 3% to close at $137.44 … that’s more than 25% off its early year, all-time highs.

And things could be about to get worse … at least according to this Smart Money trade.

This trader sold their existing block of 6,891 July 135-strike puts for $3.04 (a total of $2,094,864) and simultaneously opened a block of 6,889 August 115-strike puts for $1.61 (with a price tag of $1,109,129). 

At the end of the day, this bear has managed to maintain its AAPL downside exposure while pocketing a nice profit to boot.

And you know I love a Big Money mover who has already been right once …

So Big Money is betting on further AAPL decline …

And frankly, I’m not shocked.

I think AAPL will continue to slide, too … along with some of the biggest names on the market.

Take a look at Amazon (Ticker: AMZN) … the stock that arguably benefitted the most from the COVID pandemic.

The online retailer boomed during 2020, as everyone stayed at home and bought stuff online.

But now?

Currently, AMZN has given away pretty much all of its pandemic-related gains.

Normally, during times of uncertainty (or, as we’ve seen, times of prosperity!), investors and traders would reach for the market leaders like AMZN and AAPL.

In fact, that’s what we saw during 2020 as money was pumped into the system.

Traders went for the big names … the mega-caps that are “too big to fail.”

But currently, the leaders are the ones leading the market lower!

And that means the people who were once pouring money into these names are scrambling to get out, pushing these big names even lower.

So rather than “buying the dip,” I would argue that these are the very stocks you want to be staying AWAY from right now.

I think they’re going to be going back to their pre-COVID levels … if not lower.

It’s time to come up with a new plan.

We talked about what that “new plan” looks like during Wednesday’s mid-year trading recharge session – catch the replay here.

Your Only Option,

Mark Sebastian