On CNBC’s “Options Action,” Carter Worth of Cornerstone Macro spoke about a bullish technical set up in Apple Inc (NASDAQ: AAPL). He noted that Apple peaked on September 2 and since then it has been flat, while the S&P 500 gained more than 7%. The stock dropped 25% in two weeks after the peak, and since then it has returned to its former high. In principle, this is a setup for a breakout to new highs, said Worth. He has also noticed a bullish wedge pattern and a cup-and-handle pattern on Apple’s chart. Worth thinks the stock is going to $150.
To make a bullish bet, Mike Khouw wants to buy the June $140 call for $13 and sell the March $155 call for $3. The total cost of the trade is $10 and the distance between two strikes is $15. The trade breaks even at $150.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.