This post focuses on price at the orange target. Ideal entry is with AAPL priced over 155. For context, and to better understand the lines I have drawn, you can see the recent post linked here.
Reasons to buy puts on AAPL today:
1) 154.80-157 is resistance, given by yellow and red lines on daily, and 50sma on weekly (or enter below 30m break of 154.90).
2) Put prices will increase before ER as IV goes up.
3) With VIX at 23.43 as I write this, option prices will rise if VIX rises before FOMC.
4) Daily RSI(14) was 65.29 yesterday, and after giving bearish signals at the lows, RSI should turn down from below 66.66. The usual bear resistance zone is 60-65.
5) There is a stochastic and RSI bearish divergence with price on 30min chart (higher low price with lower low indicators).
6) Price can pullback at least to the daily 10ema which is around 150.
Reasons to buy puts on AAPL today:
1) 154.80-157 is resistance, given by yellow and red lines on daily, and 50sma on weekly (or enter below 30m break of 154.90).
2) Put prices will increase before ER as IV goes up.
3) With VIX at 23.43 as I write this, option prices will rise if VIX rises before FOMC.
4) Daily RSI(14) was 65.29 yesterday, and after giving bearish signals at the lows, RSI should turn down from below 66.66. The usual bear resistance zone is 60-65.
5) There is a stochastic and RSI bearish divergence with price on 30min chart (higher low price with lower low indicators).
6) Price can pullback at least to the daily 10ema which is around 150.
Trade closed manually
I bought puts on Friday and closed them on Monday. I would have had more profit if I had sold them today, but with so much happening this week and Monday's choppiness, I decided to take profits. Price has held 151 thus far today (see chart, resistance turned support).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.