Equity Trade Update: $AAPL (Apple Inc) Target 1 hit
Negative Short Term Reversal signal
Apple closed last night at $202.38, below our initial target 1 of $203. This is a fall of 4.04% from our reference price when we initially posted on 16th July.
Currently our options trade is slightly out of the money but we will hopefully see some more weakness this week ahead of expiry with Target 2 set at $196 which is a further 3.15% fall from here.
***Original Post***
We had a negative Reversal signal in Apple also at the close on Monday. Stock is up slightly since then but the data is still showing potential for some short term weakness.
This trade idea focuses on a defined-risk bearish setup on Apple Inc. ($AAPL), using a long put strategy to position for short-term downside into early August.
Trade Setup
Long AAPL $200 put
Net debit (cost): approx. $2.38
Max profit: Unlimited down to $0
Max loss: $2.38 (premium paid)
Break-even: $197.62 (200 - 2.38)
Expiration: August 8th
Current reference price: $210.90
Target Levels
Target 1: $203
Target 2: $196
Risk/Reward
Max Risk: Limited to premium paid ($2.38)
Reward Potential: High — profit increases as AAPL trades lower, breakeven at $197.62
📊 Payoff Diagram
Below is the payoff chart for this debit put spread, highlighting:
