• Chart of the Day: Apple Inc. (AAPL)

    by  • August 14, 2013 2:31 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Apple Inc. (AAPL) which manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide.

    Ticker:  Apple Inc. (AAPL)

    What I Am Looking At:

    • Up more than 25 percent since late June low
    • Underperforming on a year-to-date basis, down more than 6 percent
    • Emotional run-up to half-millennia level after a Carl Icahn tweet about taking a large position in AAPL
    • Bearish downside gap from last January was just filled
    • This $500-level could act as resistance as it acted as support last November/December
    • Peak call open interest for the August series resides at the 500-strike, could add to the technical resistance case
    • Unusually heavy call volume in AAPL’s mini’s, could be indicative of a short-term top as small retail specs rushing to get long exposure
    • The 10-day call/put ratio stands at 2.38, ranking in the 100th percentile of all readings taken during the past year, indicating strong optimism
    • 28 out of 36 analysts rate the shares a “buy” or better, downgrade potential

    Conclusion:  Possible stalling action at current levels could lead to pullback or consolidation, not seeing much more room for further price appreciation in the short-term


    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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