CA - Apple May Have 'Jumped The Shark' In Q2 - Here's A Put Option Opportunity

2024-05-17 07:00:00 ET

Summary

• As do many other investors, I see Apple's recent historic $110 billion buyback announcement as a sign of business weakness, not strength. Investors, so far, have cheered the announcement.
• Serious competitive threats seem to be brewing, especially in Apple's largest market. These threats will likely spill beyond China's borders.
• Major investment risks await shareholders at the beginning of November, and AAPL Put Options expiring November 15 look quite attractive. I'm specifically targeting the $170 Puts.

I'm a little surprised to see Apple ( AAPL ) (AAPL:CA) shares melt up after a short-term challenge following its post-Q2 spike, although this has been in concert with a generally rising market. With a moderately higher share price, amid subdued volatility (especially compared to the ~near earnings period), there may be an opportunity for those who have a developed a bearish view to consider Put Options at a strategic strike, and strategic expiry (carrying through the delivery of Q1 2025 guidance and the U.S. Presidential Election). I'll detail that specific trade idea lower down.

My General Views on Apple

Since this might be my only article on Apple, ever, I should discuss my general investor view....

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