Bullish Options “Example Trade” Involving AAPL Unveiled by Schwab Network

2 months ago 27

Larry Ramer

Mon, Apr 14, 2025, 7:56 AM 2 min read

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With Apple (AAPL) climbing importantly contiguous and trading adjacent immoderate cardinal statistical levels, Schwab Network unveiled a "bullish illustration trade" involving telephone options connected AAPL stock.

Apple's Technical Status Analyzed

Apple has been outperforming the wide tech assemblage successful caller weeks, Rick Ducat, a commentator astatine the network, reported. On the different hand, each of AAPL's "moving averages person been trending down," and the shares person fallen beneath their inclination line, helium noted.

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

But the banal is closing successful connected its "previous low" of $208.40 and its 21-day exponential moving average, Ducat said.

For AAPL, $222 to $225 is "an important country to watch," the commentator noted.

A Bullish "Example Trade"

Ducat suggested that traders could bargain the $215 and $235 calls that expire connected May 16 portion selling 2 $225 calls that expire connected the aforesaid day.

With this approach, traders would person a maximum nonaccomplishment of $150 and a maximum nett of $850, according to the commentator.

If Apple rises astir 3%, traders who usage the strategy volition scope their "first break-even area," but they volition commencement losing wealth if the shares ascent 11%, according to Ducat.

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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.


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