This week's Apple trading strategies (4/27-5/1)

A place for Apple traders and investors to share their best ideas—March quarter earnings week edition.

To get things rolling, here are three options traders—Carter Worth, Mike Khouw and Tony Zhang—happily agreeing Friday that Apple is about to get squeezed. Cue the video:

Below: Apple vs. the S&P 500, normalized…

apple trading strategies 4-27

Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to give financial advice. Don’t blame me if you drain your IRA doing something you read about here.

See also last week’s trading strategies.


  1. Gregg Thurman said:
    I’m going to close out my position in AAPL on Thursday.

    This has nothing to do with feelings about Apple’s earnings report and guidance after the Close that day. It has everything to do with how I expect the market will react to the report/guidance.

    Apple is within a hop, skip and jump from its all-time high. In this environment is that too high? Too often I’ve seen Apple post good number and guidance only to see AAPL take a beating by a fickle market. What happens to AAPL if the market doesn’t like Apple’s numbers?

    For this report we don’t even have guidance from Apple as a base line, and WS estimates are all over the place. I’m willing to give up some profit (my position is currently up about 12%) from a good report/WS reaction vs a reversal on my position caused by perceived bad report and guidance.

    Come Monday we will have Apple’s report and guidance and, more importantly, we will have WS’s reaction to them. My decision on what to do will be made Tuesday. If the market likes what Apple reported I’ll resume my in-the-money Call Spread strategy. If the market does not I’ll be acquiring in-the-money Put Spreads.

    For this return to trading options I’ll be cutting my usual 25% weekly goal to 10%. This will allow me to buy deeper in-the-money thereby reducing my risk.

    The key to it all is visibility, something we don’t have much of right now.

    April 26, 2020
  2. Gregg Thurman said:
    I’m thinking that the reports of increasing back-orders for the SE-2 will actually bouy AAPL.

    Maybe until earnings, but after that it’s a crap shoot.

    April 26, 2020
  3. Paul Brindze said:
    Normal would be at least some sell-off before earnings. But who knows what the effect of the SE sales will be.

    I am staying long stock and hedging a bit with some call sales, but not too much. I don’t expect a big drop after earnings in any event. But I am often too optimistic.

    April 26, 2020

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