Buying This Apple Option On Black Friday Amid iPhone 14 Shortage Could've Doubled Your Money

On Black Friday, shoppers looking for Apple's latest high-end phones reportedly returned empty-handed from its stores as the iPhone-maker struggles with production issues in China.

Apple's key manufacturing hub of Zhengzhou is likely to see production shortfalls of close to 6 million iPhone Pro units this year as a result of strict COVID-19 policies.

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Wedbush analyst Dan Ives wrote in a note, “iPhone shortages are accelerating and were front and center this morning on Black Friday across many retailers, Apple Stores, and online channels,” according to a Reuters report.

Apple shares closed 2.63% lower on Monday. As shoppers failed to find the latest iPhones on Friday, you could have grabbed the opportunity to buy Apple’s 146-strike Put options expiring on Dec. 2 at $1.43, which would have doubled your money by Monday. Following a drop in the company’s share price, the Put option surged and closed at $2.94, according to data on Barchart. Put options rise in value when the underlying stock price falls.

Benzinga’s Take: If you look at Apple’s hourly chart, the stock has been registering lower highs in terms of resistance in November as shown by the trendline. On Friday, the stock refused to breach the trendline on the upside and commenced its downward move. This was the time when traders could have judged its possible decline and a potential move to the support areas of $146.93 and $145.95, both of which were breached on Monday.

Chart courtesy: Benzinga Pro

For the time being, Apple stock has taken support near the $143.38 level. If it breaches the mark on the downside, the stock is expected to move toward the $141.43 mark.

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