Apple Appears to be at an Attractive Level

This content brought to you by TheStreet's OptionsProfits. CLICK HERE FOR A 14-DAY FREE TRIAL.


Apple (AAPL) implied volatility is again getting plastered. Now that the stock has fallen back to $525, it seems to have found a floor. I want to take advantage of the incredible low IV buy buying a slightly out-of-the-money call.

I think I could win twice on this one if the stock and IV go up at the same time. Thus I feel I have 'edge' in the trade. I am going to buy the 550 calls in April for 6.50 or so. My goal is to double my money and I will kill the trade if it drops below $3.00 a share. AS ALWAYS, this is a guideline and you should always stick to your trading plan and what's best for your risk/reward tolerance.

Trade: Buy to open AAPL Apr 550 calls for $6.50.

OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits

Mark can be followed on Twitter at twitter.com/OptionPit

 

At the time of publication, Mark Sebastian held no positions on the stocks or issues mentioned.

More from Options

Amazon's Stock Is Facing a Major Test

Amazon's Stock Is Facing a Major Test

Here's a Better Way to Hedge Using Stock Options

Here's a Better Way to Hedge Using Stock Options

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Help You Generate Income With Options

Let the Najarian Brothers Help You Generate Income With Options

Learn Options Trading from the Najarian Brothers, the Best in the Business

Learn Options Trading from the Najarian Brothers, the Best in the Business