Where's Apple Stock Headed? Options Market Offers Clues Amid Extended Rate Hike Anxiety

Major Wall Street indices closed in the red on Wednesday in the wake of Federal Reserve Chair Jerome Powell's testimony before Congress where he acknowledged the hardship caused by high inflation and reiterated the central bank's dedication to bringing inflation back down to the 2% goal.

Apple Inc AAPL shares, too, ended the session 0.57% lower at $183.96. The stock has rallied over 5% in the last month and has registered over 47% gains since the beginning of the year.

Also Read: Everything You Need To Know About Apple Stock

However, as investors and traders began considering the possibilities of extended rate hikes in the coming times, the question is will the tech rally continue or will the market undergo a correction. Under these circumstances, here's a look at the options market to understand crucial trading levels for Apple stock:

1. Resistance: Options expiring on June 30 indicate significant open interest build-up at the $190 Call strike. Apple shares closed at $183.96 on Wednesday. This shows the market is not expecting much of an upside this month. In case the stock manages to break the resistance on the upside, the $195-200 range could act as the next level of resistance.

2. Support: Options data show significant open interest accumulation at the $180 Put strike, indicating the level could act as a support this month. In case the stock manages to breach the level on the downside, the $170 could act as the next level of support in the near term.

Open interest levels only provide a fair idea about support and resistance levels. Any major news break or macro event could lead to significant movement in stock prices and cause a subsequent shift in open interest levels.

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