This week’s Apple trading strategies (4/19-4-23)

A place for Apple traders and investors to share their best ideas.

To get things rolling, here’s the CNBC segment (posted here earlier this week) in which a team of analysts — most notably Josh Brown — react to the news of Tuesday’s Spring Forward event:

Below: Apple vs. the S&P 500…

apple trading strategies 4-19

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.

15 Comments

  1. Gregg Thurman said:
    After 5 weeks of watching, and not playing, I made a weekly Call Spread trade last Monday. I made 42% ROI for the week. My original ROI projection was about 39%, but as AAPL rose so quickly I sold on Tuesday and reinvested the same amount with a higher Strike resulting in a higher gain.

    I don’t know if I’ll try it again tomorrow because RSI is approaching the dangerously over bought zone. If I do invest I think I’m going to be even more conservative than my first trade last week.

    1
    April 18, 2021
  2. Rick Chevalier said:
    Typo? April 18 earnings? That’s today!

    0
    April 18, 2021
  3. Robert Paul Leitao said:
    I try to keep things simple. I buy the shares and hold the shares. What happens between the days I buy the shares and the days I may sell some shares is not of great interest. Apple is buying far more shares of Apple than I ever could. If Apple is repurchasing shares of Apple at the pace of tens of billions of dollars each quarter, I consider myself in good company. The rest? I don’t worry too much about it. Long-term I have very few worries at all.

    Cup and handle patterns, candlestick patterns, RSI, Bollinger Bands, etc. may be of interest to some, but it sounds like mumbo jumbo to me. Besides, I have yard work to tend to while the sun is up. I have every confidence Apple is working hard to deliver amazing products and services and as an outcome will continue to deliver very attractive profits. Meanwhile, my agave plants need some care or at least some water today.

    7
    April 18, 2021
    • Kirk DeBernardi said:
      @ Robert Paul Leitao —

      So well stated. Bravo.

      0
      April 19, 2021
  4. Kathy Corby said:
    Joseph, I also wish for even higher PE’s than we have at present but realistically, a pullback going into earnings is preferable. The higher the street’s expectations, the more difficult it is for AAPL to meet them. Remember the unfortunate price action after Apple’s last quarterly report– fantastic earnings, stock retreat– and not a slight or temporary one either. From a high of 145 to a low of 116 is almost 20%.
    We all, I think, on this site love Apple and its products– but take a moment to recall that AAPL is not Apple, and a stock can’t love you back. I would advise those who can employ options to hedge for earnings. Buy some puts, or put spreads– if the stock goes up you won’t notice the loss from the puts, and if it goes down you’ll be grateful.
    In addition, remember that we are entering a season when stocks are often (not always) vulnerable to pullback, as well as dealing with real inflation risks that increase the price of products and real assets, but tend to decrease the price of equities. .

    3
    April 19, 2021
  5. Kathy Corby said:
    Having hedged AAPL earnings for more quarters than I would care to admit to you all, I suggest: on earnings day, for each one hundred shares owned, buy one short dated put at 70 delta (in the money), sell two puts at 20 delta (out of the money) and buy one at 15 delta– the stock is relatively unlikely to drop below the sold puts, but also relatively unlikely to rise above the 70 delta put, which will consequently retain at least some of its value even if the stock goes up. This strategy avoids most of the “volatility crush” that leads to loss of value of at-the-money puts even if the stock drops, but will still provide a negative 45 delta hedge. Make sure to take profits on the puts, if there are any, closing the positions before expiration. If none of this makes sense to you, fuhggetaboutit and have a great 28th.

    3
    April 19, 2021
  6. Kathy Corby said:
    LOL. Do I get to name it after myself? Adding to its appeal, it is flexible enough to hedge to a near 0 delta, by buying more contracts– but of course if one feels one needs to hedge to 0 delta (for non-options traders, that means that net/net, you neither profit nor lose, independent of what the stock itself does) perhaps one should not be in the stock. And yet, as we know, Apple has not historically done particularly well in recent quarters with earnings, (last July being the exception) and share appreciation has occurred gradually between earnings announcements: the dearly beloved “melt up.” As for me, every earnings report is either an occasion for champagne or for whiskey, so either way I win.

    2
    April 19, 2021
    • Kirk DeBernardi said:
      God bless you Kathy as I’m sure your handing out some weathered and sage advice here, but — while encouraged by others to “try it” — I have a complete vacuum-void in my brain for understanding the options approach.

      I consider myself oddly blessed with this void I as could potentially and thoroughly muss it all up.

      I’m content with another less “exciting” investment approach…

      …buy & hold — 😉

      2
      April 19, 2021
    • Bart Yee said:
      May I suggest the Corby Counter, as in a plan to counter the various market responses to an AAPL price move during earnings season?

      0
      April 19, 2021
  7. Kathy Corby said:
    Which has served every AAPL shareholder well, Kirk! I applaud the wisdom of your approach over the long run.

    0
    April 19, 2021

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