Best Stock on the Market

Call Spread on AAPL on 9/8/2014

50-day MA Support on AAPLApple Inc. (AAPL) manufacture, and market mobile communication and media devices, personal computers, and portable digital music players worldwide.

It also sells software, services, peripherals, networking solutions, and third-party digital content and applications related to its products. The company offers iPhone, a line of smartphones that comprise a phone, music player, and Internet device; iPad, a line of multi-purpose tablets based on Apple’s iOS Multi-Touch operating system; Mac, a line of desktop and portable personal computers; and iPod, a line of portable digital music and media players, such as iPod touch, iPod nano, iPod shuffle, and iPod classic. It also provides Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and various accessories, service and support offerings; and manufactures the Apple LED Cinema Display and Thunderbolt Display.

In addition, the company sells various other application software comprising Final Cut Pro, Logic Pro X, and its FileMaker Pro database software, as well as a range of Apple-branded and third-party Mac-compatible, and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, pointing devices, and various other computing products and supplies. Apple Inc. sells digital content and applications through the iTunes Store, App Store, iBooks Store, and Mac App Store; and its products through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers.

Ahead of the expected launch of its iPhone 6 and what most believe will be its long anticipated iWatch, shares have pulled back to their 50-day moving average. We expect shares to bounce from this level and rise to the top of the trading channel shown in the chart.

52-Week Trading Range: $63.89 - $103.74

Last Trade: $98.17

Trade

  • Buy 1 October $98.00 Call at $4.25
  • Sell 1 October $102.00 Call at $2.25
  • For a net debit of $2.00

Profit/Loss Analysis

  • Breakeven at $100.00
  • Maximum profit is $200.00 at strike of $102.00
  • Maximum loss is ($200.00) at strike of $98.00

Closing Summary

  • Sold 1 October $98.00 Call at $7.10
  • Bought 1 October $102.00 Call at $2.75

Position closed on 9/9/2014 at price of $4.35 with a 117.50% gain in 0 days.

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