Sayonara September

Hi Shoppers,


I think Apple (Ticker: AAPL) will trade higher from here, and here’s why:



See that hammer? It’s a beauty!


It has a small real body and a long tail, or lower shadow, and it is at the bottom of this down trend that began September 8th that brought AAPL down 9%.


Looking at the options, I like buying a call vertical in the Oct15 expiration cycle that has two weeks left to trade.


If AAPL opens and trades higher on Monday, I will buy the Oct15 143-strike calls and sell the Oct15 148-strike calls, paying up to $1.60 for this five-point spread.


If I am wrong, and the spread trades down to $1.10, I will take my losses.


I will begin profit taking at the $2.75-$3.00 level.


Trade Review


As I said, Pfizer (Ticker: PFE) was coiling, but instead of trading higher, it gapped lower. My calls went out worthless.


I am still hanging onto my iShares China Large-Cap ETF (Ticker: FXI) calls. Once the stock pops this week, I will be out of these.


Thanks for Reading … See You Next Tuesday!


Licia Leslie

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