By: Andrew Keene
Apple (AAPL) is once again taking a bite out of itself, as we see another down day with regards to the stock price. Currently AAPL is trading around the $528-$530 range, well below the moving averages ranging from the 50 day to the 200 day and has given no signals to buy. Recently Jeffries & Company lowered their price target from $900 to $800. Experts are also estimating a trimming of iPad sales from 30 million to 25 million, due to a lack of interest from Chinese consumers, with regards to the release of the iPad Mini. The launch of Apple TV has also become a big question mark for investors as speculations about the launch have been swirling, however no progress seems to have been reported from Apple itself, other than the fact that it is has become a “hobby.” With this in mind, we feel the best options play going into the end of the year is:
Buying the Dec 530-515 Put Spread for $5
Risk: $500 per 1 lot
Reward: $1,000 per 1 lot
Break-even: $525