Apple's Stock Hitting New All Time Highs
After another blowout quarterly earnings release, Apple is once again at the forefront of the U.S. stock market charging the way forward for Nasdaq traded technology stocks.
In our forecast for today we will focus on the biggest company in the world by market value. Apple is currently hitting fresh all time highs above $134 and we are sure that many traders will look how to trade this stock today.
Yesterday the company has reported yet another blowout quarter, revealing substantial gains in sales of the iPhone and the Mac. While most of the industry peers are shedding volumes when it comes to personal computers, Apple is bucking the trend once again.
The company has also announced that it will be buying back shares and increasing dividends to shareholders of the firm. This is great news for the stock, but hasn't this already been priced into the market? Probably to a certain extent it is, but we don't know how much.
Looking at the charts we have some interesting scenarios for today's trading. With many analysts saying that Apple has become a phone company, they are highlighting that iPad sales have been on a steady decline for 7 of the past 8 quarters.
This may be true, but share prices are still at 134.30 in pre-market trading. What we would be doing today is buying daily puts for tonight's expiry at around 134.50 when the market opens. After that there will be little reason for profit takers not to sell some of their hard held shares.
If prices close the day above 134.50, we would then buy a daily call option for the expiry tomorrow.