Chart Pattern: AAPL breakout from Inverted Head and Shoulders with neckline about $460. AAPL also broke the 200D SMA resistance and technically entered into bullish trend. The stock also retraced to retest the neckline support to confirm this is a successful breakout.

Trading Strategy: Short Put Spread.

• Target Entry zone:
  • Scenario 1: $470-$480 when AAPL retraces back to Fibonacci Fan support. Currently AAPL is facing the 261.8% Fibonacci Resistance.
  • Scenario 2: If AAPL breakouts from current Bull Pennant / Bull Flag (above $510)
• Scenario 1
  • STO AAPL Oct 13 480 Put
  • BTO AAPL Oct 13 470 Put
• Scenario 2
  • STO AAPL Oct 13 510 Put
  • BTO AAPL Oct 13 500 Put
• Minimum Price Target : $530 (Inverted Head and Shoulders Breakout Target)

AAPL Chart

AAPL Fundamental

AAPL Intrinsic Value

• Operating Cash Flow = $52,894 Million
• No of Shares outstanding = 908.5 Million
• Beta = 0.98
• Discount Rate = 6%
• No Growth (0% for next 10 years), IV = $443
• Conservative Growth (5% for next 10 years), IV = $563
• Moderate Growth (9% for next 10 years), IV = $709
• Adjusted Growth Rate (12% for next 10 years). IV = $826

Chart from thinkorswim, get FREE chart here.

Original post by Marubozu from My Stocks Investing Journey.