Apple's most recent trend suggests a bearish bias. One trading opportunity on Apple is a Bear Call Spread using a strike $92.14 short call and a strike $97.14 long call offers a potential 10.62% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $92.14 by expiration. The full premium credit of $0.48 would be kept by the premium seller. The risk of $4.52 would be incurred if the stock rose above the $97.14 long call strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Apple is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving down which suggests that the medium-term momentum for Apple is bearish.
The RSI indicator is below 20 which suggests that the stock is in oversold territory.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
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