3 Tech Stocks Ripe For Options Trades (AAPL, GOOG, FB)

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I mentioned in my last post that Apple (AAPL) shares closed below their 200-day moving average last week for the first time since September 2013. Apple reached a 52-week high of $134.54 in late April. With shares down 14% from their all-time high, Wall Street is finding it hard to put its money where its mouth is when it comes to tech stocks, including AAPL.

I immediately did AAPL’s chart work following Monday’s technical damage and saw a possible test to $115 or $110. Shares traded to a low of $112.10 last Wednesday before bouncing back to hold $115 that day and for the rest of the week.

A mini-death cross has also formed in Apple’s chart, with the 50-day moving average falling below the 100-day moving average, and both are sloping lower. There is continued risk to $110-$107.50 on a close below $112. If shares can clear $120-$120.50, it would be a bullish signal.

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It is still too early to trade options on Apple until a clearer picture develops or one of the aforementioned price targets is cleared. If shares can clear $120, Sep $125 calls could be targeted for a bullish run back to $125-$130.

If Apple shares fall below $112, bearish traders could target the Sep $105 puts for further weakness and a drop below $110.

On a more bullish note for tech stocks, Facebook (FB) shares finished the week slightly higher, and the chart looks a lot better than Apple’s. FB shares are well above their 50-day moving average, which is still in an uptrend. The 100- and 200-day moving averages are also sloping higher, but there is still risk to $92-$90 on a close below $94. A move past $98 would be a bullish clue that triple digits and fresh all-time highs are back in play. Shares tapped an all-time high of $99.24 on July 21.

The Sep $105 calls could be targeted if shares crack $98. The Sep $87.50 puts could be used on a drop below $94.

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In another bullish development, Google (GOOG, GOOGL) added nearly $10 last week and held crucial support at $620. I say “crucial” because shares face a drop to $580 on a close below $620. The gap-up above $580 in mid-July came on blowout earnings. Resistance is at $660-$680, and a move above these levels would be bullish. However, I don’t actively trade options on Google due to the sky-high premiums.

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On a fundamental basis, Facebook ranks behind Apple and Google, but my goal here was to highlight the divergence going on between these tech stocks. I have all of the aforementioned options trades on my watch list, along with a dozen or so more, but I will likely sit on the sidelines until the next clear trend emerges.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/08/3-tech-stocks-ripe-for-options-trades-aapl-goog-fb/.

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