Another Bite Of AAPL With A Call Credit Spread

Make sure to check out my latest interview with financial news site Benzinga.com

BookingAlpha subscribers opened a new Call Credit Spread on AAPL today. AAPL showed continued strength today in contrast to the rest of the market which was down. AAPL recently broke resistance at $350 and has continued straight up knocking on $360 today. However, the stock is looking a little tired and I think the Verizon/IPhone news is baked in. I don't want to be short this stock with my enemy's money, but I do feel like some consolidation is in the cards. Below are a few of the reasons supporting the opening of today's Credit Call Spread:

--Pop outside upper Bollinger Band on daily & weekly charts

--RSI crossing overbought threshold

--Williams %R extremely overbought

--Fast Stochastic back to very overbought territory

--Average True Range declining = indicates running out of steam, needing consolidation

--Short strike located more than 1 week Average True Range away from current price

This trade placed is a very short term position using February options that expire next Friday. The shrinking Average True Range (ATR) of the stock implies exhaustion. This fact, coupled with the other overbought indicators, makes this a pretty attractive trade. Furthermore, while the fundamentals and financials of the company are out of this world, I think some cooling off is due for the stock in light of the run as of late.

Write an Investimonials Review - Tell The World About BookingAlpha:

We are ranked high on Investimonials but we want to be #1!!!

AutoTrade Fill Report:

Trade:

AAPL Call Credit Spread - Open

AutoTrade Broker Fill Status:

eOption: Filled 63%

TradeMonster: Filled

OptionsXpress: Filled

InvesTrade: Filled

GlobalAutoTrade/Int. Brokers: Filled

TradeWallStreet: Filled

TradingBlock: Filled

TradeKing: Not Filled

TradeMonster-Get $50.00 FREE for opening a new account.

Enter promo code: BookingAlpha during account opening process for your FREE $50 bucks!

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga