Apple – the juggernaut is unstoppable

We all know what a company AAPL is.  Currently sitting on a cash pile of 260 Billion, Apple has been consistently outperforming itself with great results. And it did it once more with aplomb!

I was planning to short AAPL just ahead of the ER if it went to 155 as it looked top heavy & overbought.  Well luckily, AAPL didn’t go to 155 & I didn’t play that trade. Instead, on a whim, I bought some weekly put-call spreads (145P, 152.50C) 10 minutes before the close yesterday – the puts became worthless overnight but I was able to close the calls today above 159, yielding a 200% return on the total investment.

This juggernaut seems unstoppable. Another lesson for the bears not to play with fire before the ER.  The Apple Boat is nicely going up the stream, weathering all the storms.

AAPL Aug 2

If you want to short it, this may not be the right time unless you want to chase a few pennies. The long term channel just looks beautiful & solid enough for a further rise. Good to wait for the top of the channel and review the technical indicators when it goes above 172+ to see if it makes sense to short at that time. Happy trading!

About Venkat Pulakkad

Entrepreneur, management consultant, blogger & forecaster. Founder of Flourish Research Media that provides insights on markets, trading strategies & risk management. Currently an active trader with 20+ years of experience trading Forex, Stocks & Options. Areas of interest: Trend / Swing trading, Macro-tech analysis, building trading strategies, deploying Risk Management techniques, and helping / coaching traders to become successful traders. Twitter link: https://twitter.com/Flourish_Venkat      
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