This week’s Apple trading strategies (Earnings week: 7/30-8/3)

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A place for my subscribers to share their ideas.


To get things rolling, here’s a timely segment posted Friday on CNBC. Dan Nathan outlines an options strategy for buying protection ahead of Tuesday’s earnings and Carter Worth articulates the rational:

All of the fragility in the market is in this particular type of stock, meaning supercap growth name that is unto itself. We know there’s been trouble in industrials, in financials, we know that global equities have struggled. What we’ve seen now, after earnings, is that if you were good—Microsoft, Google etc.—you only went up a little bit. But if you were bad you got murdered, right? That’s Facebook, frankly Netflix, that’s Redhat which kicked it off.

That’s asymmetry. Which is to say, if that pattern were to persist, you have a situation where Apple if it’s good, it doesn’t deliver much. But if it’s bad you get the outsize move to the downside. That’s the risk here.

Cue the video (apologies for the ad):

How to buy protection ahead of Apple earnings from CNBC.

My take: Since I’ve never owned or traded Apple and gave up trying beat the market in anything many years ago, I have nothing to add. Don’t blame me if you drain your IRA doing something you read about here.

See also: How my subscribers make money trading Apple