Apple (AAPL) Trade Idea

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 Aug23-2013

 

 

AAPL Fundamental

AAPL Fundamental Aug23-2013

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.

 

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