Apple (AAPL) Offering Possible 21.21% Return Over the Next 28 Calendar Days

Apple's most recent trend suggests a bullish bias. One trading opportunity on Apple is a Bull Put Spread using a strike $225.00 short put and a strike $215.00 long put offers a potential 21.21% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $225.00 by expiration. The full premium credit of $1.75 would be kept by the premium seller. The risk of $8.25 would be incurred if the stock dropped below the $215.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Apple is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Apple is bullish.

The RSI indicator is at 69.63 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


TSMC’s $15 Billion Splurge Galvanizes Hope of a 5G-Led Rebound
Thu, 17 Oct 2019 09:34:04 +0000
(Bloomberg) — Taiwan Semiconductor Manufacturing Co.’s plan to spend as much as $15 billion on technology and capacity in 2019 — roughly 50% higher than originally envisioned — is spurring hopes that the dawn of fifth-generation networks will rev up global chip and smartphone demand.The primary chip supplier to Apple Inc. told investors it’s sharply increasing its estimate for 2019 capital expenditure to between $14 billion to $15 billion from as much as $11 billion previously, and Chief Financial Officer Wendell Huang said 2020 spending will be similar. The Taiwanese company also projected current-quarter revenue ahead of estimates, an affirmation that the latest iPhones have proven a hit with consumers.Chief Executive Officer C. C. Wei sketched out hopes that the emergence of 5G, the foundation of future technologies from automated factories and smart homes to blazing-fast consumer electronics, will help underpin its business in coming years. TSMC, which is the world’s largest contract chipmaker, and is seen as a barometer for the tech industry thanks to its heft and place in the supply chain, said the advent of 5G-enabled smartphones will result in more chips in devices than before.“We are much more optimistic than six months ago,” Wei said, adding that the 5G momentum was larger than the company expected. TSMC has increased its forecast of the 5G smartphone penetration rate in 2020 to a percentage in the mid-teens from its previous single-digit estimate. Many countries, especially larger ones, were rapidly pushing ahead with 5G rollout plans, Wei added.Suppliers including ASML Holding NV, Applied Materials Inc. and Tokyo Electron Ltd. could stand to benefit from TSMC’s capex increase.In addition to 5G, TSMC’s push is driven by growing demand from tech giants such as Apple and Huawei Technologies Co., said Roger Sheng, a semiconductor analyst with Gartner.“Everyone is waiting to see a bounce back of global smartphone market next year after Apple adopts 5G. The self-designed Huawei chipsets will also push demand, as will Qualcomm’s 5nm chips for next year and AMD’s server chip demand,” Sheng said.Although the demand outlook remains uncertain for 2020, the global semiconductor market is set to make a gradual recovery on the back of the demand related to 5G, AI and automotive applications, according to a note from TrendForce on Oct. 2.On Thursday, TSMC also underlined expectations that Apple, its largest customer, is riding a bounce-back in demand for the iPhones after a lukewarm 2018 iteration. Lower prices and aging handsets are helping drive demand for the iPhone 11 range, and Apple is said to be asking its assemblers to target the high end of an original forecast for 70 million to 75 million unit shipments in 2019.The Taiwanese company foresees revenue of $10.2 billion to $10.3 billion in the pivotal December holiday quarter, surpassing an average projection for about $9.9 billion. TSMC gave that sales outlook after reporting net income of NT$101.1 billion ($3.3 billion) for the September quarter, handily beating estimates as the global chip market recovers.Still, fallout from ongoing trade conflicts could crimp an industry revival. While TSMC doesn’t factor trade conflicts into its capex plans, any international trade war will have a negative effect on the semiconductor sector, Wei said. China is an especially important market for TSMC and the semiconductor industry, he added.TSMC and its industry peers had grappled with a plateauing smartphone market, efforts by Apple to move beyond hardware, and U.S. tech-export curbs on No. 2 customer Huawei. But investors are growing more confident that the emergence of 5G will prop up chip prices and demand, while the latest iPhones are firing up consumers. TSMC is in fact straining against capacity constraints in the current quarter, Sanford C. Bernstein analyst Mark Li said.The “iPhone is driving stronger near-term demand. We believe the competitive pricing of iPhone 11 is garnering good traction and has prompted Apple to place more orders at the supply chain,” Li said in an Oct. 10 note.Revenue was NT$293 billion according to previously reported sales data. Shares of TSMC climbed to a record in October on optimism over the latest iPhones. They closed about 1% lower ahead of the earnings report.To contact the reporters on this story: Debby Wu in Taipei at;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at, Edwin Chan, Colum MurphyFor more articles like this, please visit us at©2019 Bloomberg L.P.

Brexit summit: what happens next?
Thu, 17 Oct 2019 07:22:16 +0000
FT subscribers can click here to receive Brussels Briefing every day by email. Brexit is not done yet. EU and UK negotiators spent another long night thrashing out their differences over a legal text, while back in London Boris Johnson is struggling to win over sceptics in the Democratic Unionist party and his own Tory “Spartans”.

How to Survive an iPhone Disaster
Thu, 17 Oct 2019 06:05:32 +0000
(Bloomberg Opinion) — Apple Inc.’s suppliers have walked a tightrope for a long time.They try very hard to get their products into the iPhone because it can mean a massive increase in sales. But they must proceed with care, as doing so risks yoking their business to the whims of the Silicon Valley giant’s famously capricious supply chain operations. When iPhone sales stutter, Apple reacts by trying to squeeze even lower prices out of suppliers. Worse, it starts to make the components itself.That’s why it looked like horrible news for Dialog Semiconductor Plc when it became clear two years ago that Apple was going to produce its own power-management chips (which regulate how energy is distributed around a device) for its iPhone, rather than buying them from the British tech company. But Dialog has managed the transition well. The stock has risen more than three-fold from a 2018 low.Adding to the ignominy at the time, Apple paid what looked like a bargain $300 million last October to take on 300 of Dialog’s engineers, and pledged a further $300 million to buy Dialog components over three years to help its transition out of the iPhone supplier stable. A year later, though, and the terms of that deal look like a canny piece of business for Dialog’s chief executive officer Jalal Bagherli.While Dialog would no doubt have preferred to retain the status quo, where 75% of its revenue came from Apple (almost all from iPhone components), that made it particularly vulnerable to being squeezed on prices.The share price recovery this year has only brought Dialog back to where it was before Apple’s decision to drop it as an iPhone supplier. But it secured three years of guaranteed revenue, without the cost of employing the engineers responsible for generating much of it (since they’ve now joined Apple).The British company is pivoting meanwhile to supply consumer and industrial products with a healthier growth trajectory than the iPhone, such as Apple’s AirPods and Macs. Yes, they’re still Apple products but there’s less pressure on supplier margins. Plus Dialog wants Apple to account for less than 40% of its revenue by 2022.This does all point too to a softening by Apple toward its suppliers, particularly those making components not easily found elsewhere. In July, Bloomberg News reported that it had pledged $100 million to keep afloat the troubled Japan Display Inc., a maker of iPhone screens. That followed an $850 million payment to Samsung Electronics Co. to make up for a shortfall in purchases of organic light-emitting diode displays.The driver of Apple’s changed behavior is surely the fierce competition in smartphones, where its market share has declined. The company’s ability to strong-arm suppliers into giving it better terms in return for stratospheric sales growth is therefore waning. If Apple’s going to retain access to cutting-edge components, suppliers must know they won’t be cut adrift.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at©2019 Bloomberg L.P.

TSMC Boosts Q4 Revenue Forecast; Apple Supplier Sees Solid Smartphone Demand
Thu, 17 Oct 2019 05:22:00 +0000
Apple supplier TSMC boosted its current quarter revenue forecast amid what it said was stronger-than-expected global demand for premium smartphones.

Dow Jones Futures: Netflix, IBM Lead Big Earnings Movers As Stock Market Rally Holds Strong
Thu, 17 Oct 2019 02:42:14 +0000
Stock futures: Netflix soared late on earnings despite missing on subscriber growth again. IBM, Alcoa and CSX were big earnings movers too.

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