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Home › Forums › Swing Trades › Magnet Trade in AAPL
There’s a lot going on in the stock, but I think it affords us an opportunity to play it back to 100+. Here’s the 30 minute chart:
At the beginning, the structure of the stock followed the rest of the market. It was very weak into the 92’s, it retested the lows, then it rocketed higher back to 98.
However, unlike the rest of the market, it hasn’t come back and retested those recent highs. However, it has stabilized into 95.75. We could characterize this as a “cup and handle” patteern, or more simply a retracement of a strong move where buyers are continuing to be found at higher prices.
The longer we hold above 95.50, the higher the odds of a roll higher to retest pivot highs at 98. If we retest pivot highs at 98, then 100 easily comes into play as a whole number magnet as well as the January resistance.
We’ve got a good low risk opp here… it’s either going to fail or work fast:
Buy to open AAPL Apr 100 Calls @2.00 or lower
Hard stop @94.47
If stopped out, reenter on retake at 97 with a 2 pt stop.
Sell half into 98.
Roll contracts or spread into 100.
Typo: stops at 95.47, so stops hit here.
Out @1.75