Apple: Double top?

Apple has declined in recent days from $180 to $170, which is a support point and currently it is so oversold, it might hold for few days. But if we step back and see the double top, then Apple is in for more pain. If Apple breaks $170, it can get to $140. Right now, I have no bets in place, waiting for the $170 to resolve one way or another. If you are some one with a significant gains in Apple, you may want to think about hedging.


The last time Apple was down 4%+ and the S&P 500 and Nasdaq were both up on the day was over 10 years ago on 1/28/14 and before than 6/12/08.


I have bought Jan 25 $170 put and sold May $160 Put for a net price of $9.07. I am expecting some near-term weakness in Apple but it should find some support around 160. Generally buying a call has a much better payout than buying a put (after all puts have a floor, but calls “infinity and beyond”). In any case, I have so much technology, so this is a tiny position and most likely I will close this before Jan.

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After today’s move, closed the long put position. It looks like $170 is resolving to the upside, bullish. Bought some shares and few covered calls.

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