This week's Apple trading strategies (3/23-3/27)

A place for Apple traders and investors to share their best ideas — worst week since October 2008 edition.

To get things rolling, here is former AllianceBernstein CEO Peter Krause on CNBC talking about Apple as a microcosm of the pandemic's demand impact, which he sees as a three to six-month interregnum. Cue the video:

Also on CNBC, we have Piper Sandler's Craig Johnson suggesting that Apple has a lot of support around $225 and that this might be a good entry point to start writing some calls puts. Cue the video:

Finally, watch Apple underperform the S&P 500 last week from the start Monday to Friday's ugly close:

apple trading strategies 3-23

Disclosure: I am now an Apple shareholder (see Why I bought a share of Apple, my first), but I still have nothing to add. Don’t blame me if you drain your IRA doing something you read about here.

See also last week’s trading strategies.

16 Comments

  1. Fred Stein said:
    No predictions, rather a reminder, anti fragile.

    The world has taken on a lot of debt, some of which cannot be supported without a goldilocks economy. Hence some companies, and entire nations, are fragile. No one can predict the severity or duration of the impact of this fragility.

    Apple remains anti fragile. At some point the market finds a support level, and AAPL becomes “the” safe haven investment. The current price point is OK, no need to rush.

    3
    March 22, 2020
  2. Gregg Thurman said:
    Until the last hour of Friday’s trading I was prepared to take a serious look on Monday for an entry point. Now not so much.

    1
    March 22, 2020
  3. Kenny Kruger said:
    Will be interesting to see if ipad/mac numbers spike this qtr as people gear up the home office/home school.

    1
    March 22, 2020
  4. David Baraff said:
    I hadn’t realized Friday was triple (or was it quadruple?) witching. I wonder how much of the sell-off truly was caused by that, and if there might be a (temporary rebound) back up.

    Personally, I wouldn’t be looking for a bottom until we get some more clarity, which feels like it has to be at least 2-4 weeks out. I fully expect AAPL to crash below $200 in the next 2 weeks.

    2
    March 22, 2020
  5. Jerry Doyle said:
    Apple’s pipeline continues to push out new and innovative products. More new Apple products are coming in the months ahead. Consumers are purchasing these products. I know that for a fact. I am purchasing them. Relatives are purchasing them. Friends are purchasing them. Members of our city’s social clubs and churches are purchasing them. The products are either upgrades or first time purchases for home schooling, for home physical workout classes (for gym members), for continued church events pushed on-line for congregants, for daily social forums for interactions, especially for Seniors isolated in their homes. The purpose is so folk quarantined can carry on the normal daily activities of life.

    It is ludicrous to think Apple is shut down similar to some other businesses. Unlike American Airlines, Apple is up and flying quite well, thank you, for what I am seeing and from what I am hearing. Take your sad sob stories elsewhere.

    Apple is not closed down. Its operations are in the thick of activities. The current stock price is a steal of a lifetime.

    There is little doubt investors view Apple as a safe haven during this period. Individuals with discretionary funds able to purchase shares will be rewarded handsomely.

    Watching the Apple stock price one would think Apple’s Q2, Q3 and Q4 revenues and earnings were going to be badly throttled, quashed or strangled. In summary, too many folk are taking an extremely myopic perspective of the continued role Apple is playing in facilitating folk to interact with one another and to network with small and large groups to tap needed resources for surviving during this period.

    3
    March 22, 2020
    • Fred Stein said:
      Thanks. We all need to be reminded. And Apple has good things coming that we only imagine, well beyond the rumors of the next iPhone. Better yet, they have the cash to bring them to market.

      And even better, Apple has the courage to kill, delay, or fix products and services as needed.

      Sadly, right now, the market ignores logic and simple math.

      1
      March 22, 2020
  6. David Drinkwater said:
    In the two-hour Buffet interview, Apple comes up at ~1:25:00.

    I sure don’t know if this will make it through, so I’m trying to encode it ….

    URL stuff, then youtu dot be with detail JvEas_zZ4fM

    0
    March 22, 2020
    • Hugh Lovell said:
      Thank you for the link.

      0
      March 22, 2020
  7. Fred Stein said:
    WSJ on Saturday has an article Bond-Market Strain Heightens Risk.

    Key point is that Bond markets are not behaving properly (not my area). I have notice the markets for puts and calls have recently had very wide spreads.

    These market inefficiency may create trading opportunities on Apple options. But don’t expect to exit positions easily.

    0
    March 22, 2020
  8. John Konopka said:
    Dow futures indicate another substantial drop on Monday.

    0
    March 22, 2020
    • Jerry Doyle said:
      @John Konopka: The senate could not muster the votes to pass the third stimulus package. Unbelievable! The markets’ reaction was to plummet, setting the circuit breakers off so now we can anticipate at opening tomorrow morning the markets collapsing hitting new lows. I wonder just how much downward a strong, viable company like Apple’s stock price can be suppressed farther? This is unbelievable!

      I swept another tranche of funds into my brokerage account this evening in preparation for tomorrow. This will be my third time to enter the market scooping up additional shares of Apple since this crisis started. Unbelievable!

      I never will see in my life time such bargain basement prices for Apple shares. This is an opportunity of a lifetime. Just when we thought we had seen everything and lived through much, along comes another entirely new event that sucks the oxygen from your lungs. World events never ceases to surprise one.

      1
      March 22, 2020

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