Apple's Had Bad News -- Here's How to Play it Long-Term

Apple is likely a long-term play. Within that play, there's a way to mitigate volatility. Here's how.
Publish date:

Believe it or not, Apple Inc. (AAPL) - Get Report could be a volatile stock. 

It's had issues of late, ranging from fears of hardware sales slowdowns based on supplier sales guidance cuts, discounting of devices that aren't garnering much demand, and some drop of pessimism regarding its decision to delay rolling out the 5G phone, while competitors don't delay. 

Still, it could have upside long-term. "This is one {stock} where you're really going to have to evaluate your time frame," said JJ Kinahan, chief market strategist at TD Ameritrade. "There's going to be some volatility," he added.  "But they have a very good management team, their services business has been growing pretty significantly, so if you're a longer-term believer....fine," Kinahan said. 

For investors who are indeed holding Apple long-term, it would still be wise to mitigate volatility, and there are clear ways to do that. Kinahan noted that if an investor has the capital to buy 500 shares in Apple and likes the upside, but is afraid of volatility, he or she could buy 100 or 200 shares, and then wait and see ow the stock trades. This way, some capital is protected, and the investor can buy at a lower price, should the stock get hit.