Apple Offering Possible 42.86% Return Over the Next 25 Calendar Days

Apple's most recent trend suggests a bearish bias. One trading opportunity on Apple is a Bear Call Spread using a strike $530.00 short call and a strike $540.00 long call offers a potential 42.86% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $530.00 by expiration. The full premium credit of $3.00 would be kept by the premium seller. The risk of $7.00 would be incurred if the stock rose above the $540.00 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 at 59.93 level which suggests that the stock is neither overbought nor oversold at this time.

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

LATEST NEWS for Apple

Apple files appeal in e-book antitrust case
Wed, 26 Feb 2014 02:20:08 GMT

Apple files appeal in e-book antitrust case
Wed, 26 Feb 2014 02:18:44 GMT

Apple Seeks to Throw Out E-Books Antitrust Ruling
Wed, 26 Feb 2014 02:06:23 GMT

Apple fixes security flaw for Macs
Wed, 26 Feb 2014 01:23:00 GMT

Fast Money Final Trade: GM, QCOM, AAPL, WFT
Tue, 25 Feb 2014 22:58:00 GMT

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