We shared our bearish AAPL analysis a little over a month ago which was spot on. The question is, what’s next?
The image above references the same three up trend lines we noted in our previous article. We find it interesting that AAPL actually broke the optimal 45 degree up trend, and since doing so is now hugging along the support turned resistance of that line. This has resulted in a very tight trading range in AAPL this entire week.
One never knows what will happen next, but we suspect continued range bound price action until AAPL runs into the initial up trend support line. At that point, we may start to see some upside in the stock.
The play here may be an Iron Condor given the somewhat high levels of volatility premium priced into shares of AAPL. We intend to explore this strategy, along with other range based options strategies.