Apple (AAPL) Supplier Shock Ripples – March 5th, 2020

S&P 500 Market Outlook: Neutral

Bearish Credit Spread: AAPL $302.74 – Technology

OptionsPlay’s bearish trade for Thursday, March 5th is Apple (AAPL). AAPL is part of the Technology Sector (XLK). XLK has declined 5.66% lower over the past month and its 1m and 6m trend turned bearish on Feb 24th and is just bounced lower off its $95 resistance level. 

Learn about Selling Vertical Spreads

Apple’s 1m and 6m trend turned bearish on Feb 24th and recently bounced back to its $302 resistance level, providing a good level to fade this rally. With a technical score of 10 (out of 10), AAPL is a strong stock that is starting to trend lower. 

As a stop loss, if AAPL were to trade above $302 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread increases above $15.00. View AAPL Trade

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