November 19, 2020 - MDT Alert (AAPL)

I would like to make a suggestion on a stock that is right at the level I mentioned in this morning's update.

And that stock is Apple.

I mentioned this morning how I felt support should be at $116.61, which happens to be the midband on the 60 minute chart.

Apple dropped to a low of $116.81 and seems to be holding that level.

As a result, I am going to suggest a trade.

I am not going to suggest you buy a lot of time because this is a short term swing trade.

I am going to suggest you trade the December 4th expiration date and use a $4 wide debit spread.

Apple is trading around $117.66 as I write this.

Here is how you open the position:

Buy to Open December 4th - $118.00 Call for $2.93

Sell to Open December 4th - $122.00 Call for $1.33

The net debit will be $1.60 per spread.

Based on the tracking portfolio, I suggest you limit the trade to a 6 lot or 1% of the portfolio.

The maximum gain on a six lot would be about $1,440 or 150%.

Apple has to move above $122 to earn maximum profit.

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