Yo, Pit Crazies,

Every market has its hero and when they fall it is sad.

There are a lot of tweets and so forth comparing this market to the financial crisis of 2008, but I think the dot.com boom is more appropriate. Big Tech made a ton of money for a short period of time due to a massive government redistribution of wealth.

The Federal Reserve is now undoing this most recent distribution, although Congress is trying hard to keep it going just by changing the players.

Apple Inc. (Ticker: AAPL) is one of those companies that should get back to a pre- pandemic level, plus a little premium.

Let’s see what that number is.

Markets Look for New Leaders When the Narrative Changes

I have an iPhone. It is a 5-year-old Apple 5e and my kids make fun of me because it is a bit bigger than a credit card.

Apple has built a great business, but investors decide what kind of multiple to give growth.

AAPL, for most of its life in the last 10 years, had a multiple in the mid-teens and currently is 21, coming from over 30x last year.

If I am looking at AAPL getting back to more historical numbers that means another 20% can get knocked off of its market cap. 2018 was the last freefall due to rising rates for AAPL and it is on its way again.

I am holding AAPL put flies for next week but am going to add a longer duration.

The Rundown

NitroTrader

Mark is running hot with 18 of the last 20 closes as wins. Good way to end the year and a nice way to start a new one.

Join us on Thursdays at noon ET.

Mark bought some IQIYI Inc. (Ticker: IQIYI)  Jan. 20 5.5/7.5 call spreads and picked up a 93% gain.

Also, throwing some shade on the Rivian Inc (Ticker: RIVN) truck with a Feb. 3/Jan. 6 17 put calendar and a 46% gain.

To Your Trading Success,

AG