Apple (AAPL) slid roughly 16% from Dec. 1 through early January as headlines fixated on soft iPhone demand. Post-earnings, that narrative has eased. Management signaled a healthier March quarter and resilient demand in Asia, and the stock has started to rebound. Against a backdrop of improving risk sentiment for mega-cap tech (AI spend, easing inflation, and hopes for a friendlier rate path), AAPL’s tape is flashing several positive signals. What I’m watching MACD (5,13,5): I prefer a faster MACD to catch reversals sooner. Since 1/26, the reading has flipped positive and continued to climb—supporting the idea that upside momentum is building. RSI (Relative Strength Index): After sinking into deep oversold territory between 1/6–1/23, RSI has ripped higher. That adds meaningful confluence to a bullish reversal case. EMAs (8, 21, 34): The 8-day EMA (blue) is pressing toward crosses above the 21- and 34-day EMAs. A positive stack (8 > 21 > 34) typically aligns with “buy-the-dip” conditions rather than “fade-the-bounce.” Every trade carries risk. My trading algorithm, Maya, runs a rules-driven framework with nine defined exit rules to manage downside and lock in gains, and it alerts members with precise entry and exit signals. Check it out here . The trade setup: AAPL 265-270 bull call spread To participate in the recovery without overexposing capital, I’m using a bull call spread. With AAPL around $268, I can construct this trade by buying one leg in-the-money and selling one out-of-the-money. Max profit is realized if AAPL finishes at or above $270 at expiration. That’s only a modest push from current levels and yields a clean 100% return on risk (risk ~$250 to make ~$250). The structure is capital-efficient, easy to scale (add more contracts), and keeps risk strictly defined. Here is my exact trade setup: Buy $265 call, Feb 27th expiry Sell $270 call, Feb 27th expiry Contracts: 1 Cost: $250 Potential Profit: $250 -Nishant Pant Founder: https://tradewithmaya.com/ Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
The narrative on Apple is turning bullish. How to trade the iPhone maker with options
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