By Licia Leslie
August 16, 2024
Hi Shoppers,
Apple (Ticker: AAPL) has been up nine days straight after bottoming on August 5th at $196:
It has reached the red median line of the pitchfork and yesterday’s action may have produced a doji.
A doji is a change in trend candle found at the top of an uptrend or the bottom of a downtrend.
We won’t know if it’s a doji until we get confirmation this morning of AAPL opening and trading lower.
If it does, I think it can trade down to $219.50 and possibly test the 50 day moving average at $217.
Shopping for puts, I like next week’s expiration:
The 225/215 put vertical for around $2.25 would be a good spread.
You are buying a 19 implied volatility and selling a 23.29 implied volatility.
Remember, only if AAPL opens and trades lower.
Use a close over $224.75 and your stop loss.
Trade Review
I last wrote that Nvidia (TIcker: NVDA) was going to trade $113.75 and $119.50. I nailed it! That call butterfly doubled.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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