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Quantamize Apple Trade Update April 6

Apr 06, 2018

Apple moved from a Large Cap C rated stock in March to an A rated Conviction Buy in the Info Tech sector for April in our Q-Factor Model.On March 23rd, we recommended selling the April 20th 180-160 strangle for a credit of $2.70. We are now recommending that the strangle be covered (trading $1.30 mid-market) and the following position be initiated due to the rating increase, a favorable volatility regime and upcoming earnings.
  • 2 Month Volatility is -2.1% below our forecast
  • 2 Month skew is 3.18 standard deviations above its 1 year mean
 Long Call Spread Collar:  reference price $169.5
  • Buy the May 18th 175-185 call spread and sell the May 18th 160 puts
  • Net Credit: $.55
  • Max Payout: $10.55
  • Upside Breakeven: $ 175.20
  • Downside Breakeven: $160.55
  • 200 day Moving Average 164.10
  • Earnings: May 1st (Unconfirmed)
  • Risk- High