Comments:
In the short term Apple is looking bearish as the PLdot trend is broken (price closed below the PLDot line yesterday followed by an opening on the down side today). Also the Composite index is looking bearish because of the divergence in the composite index tops.
Having said that, weekly and monthly charts are looking very positive - PLDot trend is very strong on both and the composite index is on a bullish run.
From an EW perspective, I think we are in the middle of a wave 3 or wave 5, depending on how you look at it. Thus it is possible the short term trend reversal will feed into the longer term trend reversal.
However, I think the reason for the consolidation in the short term chart is because of the earnings release on 4/20 (Today!). I think AAPL still has some ways to go further north, especially since the Monthly PLDot resistance and Fibonacci resistance is so high. Also, there is very strong PLDot and Fibonacci support in the 230 area, so I doubt AAPL, if it falls, will fall far.
My AAPL Trades:
May 240 Calls - left over from a straddle
230-220 Bull Put Vertical
Will post more charts.
-Wown
StockJockz.blogspot.com
1 comments:
Here are the details of my apple trade.
bought the puts at 11.25 and sold at 8.45, net loss of 2.8.
bought the calls at 10.05, currently trading at 19.05, net gain of 9.
So in total, i gained $6.2 on 21.30, 29% return.
As for now, I think I am actually going to hold on to my calls. looking at the monthly chart, AAPL has jus started a new bull trend according to PLDot indicators. on the weekly, a bull trend is established and continuing, and on the daily if we close 2 more days above the PLDot, a new bull trend will begin. So that is a trifecta I look for when making bull trades. Not to mention the next resistance i see is sitting out at $278.
As far as the negative vega, the calls are so far ITM that vega is a mere 19.21, which is hedged currently by the spread for an overall vega of -5.
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