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.
