Bearish Options Trade on AAPL Unveiled

Larry Ramer

Thu, Apr 3, 2025, 9:29 AM 2 min read

A Schwab Network commentator unveiled a bearish, short-term enactment play connected Apple (AAPL), portion a impermanent connected the aforesaid conception expressed bullishness astir the banal market's outlook.

A wide presumption of an Apple store, showing the scope of products the institution offers.

A Bearish Options Trade connected AAPL

"Apple has the astir vulnerability to tariffs" among ample tech stocks, Schwab commentator Tom White said. He noted that the company's products are manufactured successful a fig of countries that were deed with important tariffs, including India and Thailand.

Further, helium pointed retired that the company's AI initiatives person not borne overmuch fruit, portion its valuation "is inactive beauteous rich."

White suggested buying April 17 puts with a $205 onslaught terms and selling $190 puts with the aforesaid expiration date.

Traders volition wage a nett premium of $4-$5 and person a break-even constituent of astir $200, White reported.

A Veteran Investor Is Bullish

Investors received "certainty" astir tariffs yesterday, and companies tin find ways of keeping their margins elevated, contempt the tariffs, said James Demmert, laminitis and Chief Investment Officer of Main Street Research. What's more, the bull market, driven by "AI tailwinds" is inactive intact, and price-earnings ratios person go much attractive, helium stated.

While we admit the imaginable of AAPL, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than AAPL but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.