Taking Action on Apple

Wall Street came back from the long Easter weekend full of bullish enthusiasm after getting news last Friday that the U.S. economy is rebounding and managed to create 916,000 new jobs last month.

With the S&P 500 surging to new all-time highs, we have a great opportunity to enter a new trade on Apple (NASDAQ:AAPL).

AAPL has been stuck in a funk for the past month as the stock has been consolidating in the aftermath of the February tech selloff.

However, we don’t think this holding pattern is going to last much longer.

The stock still has strong fundamentals and is likely going to benefit from an uptick in consumer spending now that more stimulus checks are making their way into consumers’ checking accounts.

Technically, AAPL is on the cusp of completing an inverted head-and-shoulders bullish reversal pattern.

The bullish movement has brought the stock right up to the down-trending neckline, and we expect the stock to break up through this level in the short term as the company gets ready to release its quarterly earnings later this month on April 28, after market close.

To take advantage of this bullish movement, we recommend you sell to open a new put-write on the stock.

We prefer a strike price that lines up with the support level most recently confirmed by the right shoulder of the inverted head-and-shoulders pattern.

And we like a late April expiration because it comes after the company’s scheduled earnings announcement, which should give us a nice premium boost.

On the date of publication, John Jagerson & Wade Hansen did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

John Jagerson & Wade Hansen are just two guys with a passion for helping investors gain confidence — and make bigger profits with options. In just 15 months, John & Wade achieved an amazing feat: 100 straight winners — making money on every single trade. If that sounds like a good strategy, go here to find out how they did it.


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