Trade Alert - (AAPL) May 7, 2025 - BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert - (AAPL) – BUY

BUY the Apple (AAPL) June 2025 $220-$230 in-the-money vertical Bear Put debit spread at $8.80 or best

 

Opening Trade

5-7-2025

expiration date: June 20, 2025

Number of Contracts = 12 contracts

I bet you don’t get many short recommendations for Apple, but here’s a nice one.

The implications for Apple were disastrous when a senior officer testified that artificial intelligence was demolishing their traditional search business.

Of course, Alphabet (GOOGL) shares were trashed, down 7%. But Apple took a 5% hit as well because it earns an eye-popping $50 billion a year from its IOS operating system, referring all searches to Google.

Apple shares have been trading rather feebly this month. While the S&P 500 rocketed 15%, (AAPL) managed to eak out an unimpressive, miserable 20% gain while shares like Palantir (PLTR) doubled.

With the bulk of its products made in China, Apple is one of the worst affected by the trade war. It hasn’t introduced any new product lines in years. Its artificial intelligence products have lagged far behind promises.

Worst of all, Apple is the most overowned stock in the world as it is viewed as a “safe” stock.

I am therefore buying the Apple (AAPL) June 2025 $220-$230 in-the-money vertical Bear Put debit spread at $8.80 or best.

Don’t pay more than $9.30 or you’ll be chasing on a risk/reward basis.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.

To learn more about the company,y please visit their website at www.apple.com

This is a bet that Apple will not rise above $220 by the June 20 option expiration in 32 trading days.

Apple Inc. (formerly Apple Computer, Inc.), based in Cupertino, CA, is the largest publicly listed company in the United States (ahead of Nvidia) with a market capitalization of $3 trillion. It dominates in smartphones with a 66% US market share and accounts for 90% of global profits. 

It designs, develops, and sells a variety of consumer electronics, computers, and their software, and online services. Its products include the iPhone, iPad, Apple Watch, Mac computers, the artificial reality Vision Pro headset, and Apple TV. It is also entering the movie production and distribution business. In my early days, I knew the co-founders Steve Jobs and Steve Wozniak.

Here are the specific trades you need to execute this position:

Buy 12 June 2025 (AAPL) $230 puts at………….…….….$32.00

Sell short 12 June 2025 (AAPL) $220 puts at……………$23.20

Net Cost:………………………….………….…..,,,,,,,,,,,,,,,,,,,,...$8.80

Potential Profit: $10.00 - $8.80 = $1.20

(12 X 100 X $1.20) = $1,440 or 13.64% in 32 trading days.

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.