Apple (NASDAQ:AAPL), together with subsidiaries, designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players; and sells related software, services, peripherals, networking solutions and third-party digital content and applications worldwide.

The drubbing in AAPL shares continues seemingly unabated, with the shares trading under $540 for the first time since March 6. Since earnings on April 24, the stock has been down 11 out of 15 days, falling 12% from $610 to $537. AAPL now has a projected dividend yield of nearly 2%, eclipsing the yield on the 10-year government bond by 25 basis points. Much of the recent selloff has come on cash-raising by hedge funds, with AAPL being seemingly every fund’s largest holding.

Given that AAPL shares now fetch only a 13 P/E on a trailing basis and under 10 on a forward basis, combined with a nearly 2% yield, I think AAPL is reaching a valuation level that will get some institutional support. I look for AAPL to head to $560 by July expiration.

Based on AAPL’s closing market price of $530.12 for May 17, and using a target price of $560, and a target date of July 20, 2012, option strategies to consider include buying a July call spread, selling a July put spread, buying a July call or using another options strategy that best fits your trading style and risk-return objectives.

For the full details on this trade, visit TradingBlock.com, create a free Instant Login and try the TradeBuilder feature, where you’ll see several ways to trade this name. Best of all, you can see a potential profit-and-loss outline for each strategy.

Create your free login, and get access to the details about these AAPL options trading strategies by visiting TradeBuilder here.

As of this writing, Tim Biggam held neutral spread positions in AAPL.