While some stocks have been climbing to new highs the last few months, others have been consolidating, waiting for their chance to break out.

Apple (NASDAQ:AAPL) is one of those stocks.

After reaching a new high in late January, AAPL got caught up in the tech selloff last February.

The stock dropped to support at $116, and it has been consolidating in a tighter and tighter range ever since.

Last week, AAPL finally broke up through the down-trending resistance level it has been interacting with for the past few months, and it looks like the stock is ready to break higher.

Resistance at ~$135 proved too strong to break through in April, but we think AAPL has enough bullish momentum to finally push through.

It looks like investors are finally waking back up to the fact that AAPL is a fundamentally sound company with the potential to continue generating massive cash flow with its anticipated iPhone 13 (with its upgraded 5G capabilities) and its expanding Apple Services portfolio (including the App Store, Apple Music and advertising).

To take advantage of this, we recommend you sell to open a new put write on AAPL.

We prefer a mid-July expiration for this trade. Even though there are only a few weeks left until July’s monthly expiration, the option premiums are still high enough to justify a new entry at this time.

And we are setting our strike price at the support level AAPL established during its consolidation range in April.

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.