Apple (AAPL) Offering Possible 21.95% Return Over the Next 20 Calendar Days

Apple's most recent trend suggests a bearish bias. One trading opportunity on Apple is a Bear Call Spread using a strike $116.25 short call and a strike $121.25 long call offers a potential 21.95% return on risk over the next 20 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $116.25 by expiration. The full premium credit of $0.90 would be kept by the premium seller. The risk of $4.10 would be incurred if the stock rose above the $121.25 long call strike price.

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

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

The RSI indicator is at 47.35 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


Dow Jones Futures Tumble As Apple Slides On China Sales Dive; Market Rally Still Under Pressure
Fri, 30 Oct 2020 09:47:17 +0000
Futures fell sharply, suggesting Thursday's market rally may be fleeting. Apple sank on weak China sales. Amazon also fell. But Google jumped on a huge night for earnings.

Apple Shares Decline After IPhone Sales Miss, China Drops 29%
Fri, 30 Oct 2020 09:41:32 +0000
(Bloomberg) — Apple Inc. shares fell 4.5% in early trading on Friday, the day after it reported iPhone sales that missed Wall Street estimates and said revenue in China slumped.The company gave no forecast for the key holiday quarter, disappointing some analysts who were hoping for guidance. However, Chief Executive Officer Tim Cook said the new iPhone 12 line has been well received. Sales of Macs and Services also reached all-time highs in the fiscal fourth quarter.The Cupertino, California-based technology giant on Thursday said sales in the three months ending Sept. 26 came in at $64.7 billion. That beat analysts’ estimates of $63.5 billion, according to data compiled by Bloomberg. Earnings were 73 cents a share, also topping Wall Street expectations.Sales of the iPhone fell 21% on anticipation of the new models, which arrived later than usual this year. Cook said the response to the 5G iPhone lineup and other new devices has been “tremendously positive.”Read more: Apple IPhone 12 5G Line Wins Praise for Lower Prices, New SizesIn Greater China, one of the company’s most important regions, revenue fell 29% to $7.9 billion, the lowest since 2014. Products beyond the iPhone grew double digits in China, Luca Maestri, Apple’s chief financial officer, said in an interview with Bloomberg Television. He expects the iPhone 12 Pro Max with its larger screen to do “incredibly well” in the region and that the company is confident about growing there in the December quarter.Apple shares declined 4.5% to $110.15 in early trading on Friday, after closing at $115.32 in New York. The stock has surged 57% this year and expectations were high ahead of Thursday’s results.“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” Cook said.The world’s largest technology company didn’t provide guidance again due to the ongoing impact of Covid-19, with Maestri citing the uncertainty from rising cases in the U.S. and Europe. The holiday quarter is usually Apple’s most important. This year, it includes the release of the iPhone 12 lineup, a new iPad Air, a cheaper HomePod and Macs with Apple’s own processors.On a conference call with analysts, Apple said the iPhone, other major hardware and services will generate double-digit growth in the current quarter.Maestri is optimistic about the iPhone’s performance, saying that the new line has the “tailwind of 5G, which is a once-in-a-decade opportunity.”Cook added that Apple is entering 5G at the right time, with carriers improving and expanding their networks on a weekly basis. He also said 5G networks are “fairly advanced” in China, which could help sales during the current period.Fiscal fourth-quarter revenue from the iPhone was $26.4 billion. Wall Street expected $27.1 billion. The iPad brought in $6.8 billion, beating estimates of $6.1 billion, while Mac sales totaled $9 billion, ahead of Wall Street forecasts of $8 billion.The pandemic has forced millions of people to work and study from home, spurring demand for Apple devices. But the health crisis has also disrupted the company’s global supply chain.“Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment,” Maestri said in a prepared statement.New iPhones often come out in September, giving Apple’s fiscal fourth-quarter a boost. This year, the iPhone 12 and iPhone 12 Pro went on sale last week, while the iPhone 12 mini and the iPhone 12 Pro Max become available for pre-order next week.That left Apple relying on other new products in the September quarter, including a couple of weeks of sales of the Apple Watch Series 6 and a lower-end iPad. The company also saw continued iPhone sales from the cheaper iPhone SE launched earlier this year, the newest iPad Pro and existing Macs.Services, which includes the App Store, Apple Music and iCloud, generated sales of $14.5 billion, up from $12.5 billion a year ago and higher than Wall Street expectations of $13.9 billion. The services result was spurred by records for music streaming, cloud storage, AppleCare product support and the App Store, Maestri told Bloomberg TV.That segment might get another boost in the current quarter when the company launches Apple One subscription bundles and a new Fitness+ service. Maestri said the bundles will launch on Friday and that the fitness service will debut this quarter.Apple’s Wearables, Home and Other Products category, one of the firm’s fastest-growing segments that includes the Apple Watch and AirPods, brought in $7.9 billion in revenue. That beat Wall Street predictions of $7.4 billion.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Apple Tops Q4 Earnings Forecast But iPhone Revenues Miss; Declines To Give Current Quarter Guidance
Fri, 30 Oct 2020 09:38:00 +0000
Apple said the late launch of its new iPhone 12 hit revenues for its top-selling product, and declined to give current quarter guidance amid the worsening global coronavirus pandemic.

Apple, Amazon, Twitter, Google, Chevron – 5 Things You Must Know Friday
Fri, 30 Oct 2020 09:05:00 +0000
Stock futures tumble as U.S. tech giants issue tepid outlooks for the rest of 2020; Apple posts weaker iPhone sales and a revenue slide in China; Amazon's operating income outlook disappoints; Twitter's user growth slows.

Megacap Tech Disappoints Market Where Nothing’s Good Enough
Fri, 30 Oct 2020 08:41:19 +0000
(Bloomberg) — Solid quarterly earnings from America’s biggest tech firms weren’t enough to keep investors from selling late Thursday, the latest sign sentiment is turning against ultra-expensive digital megacaps.Futures on the S&P 500 were down 1.4% as of 8:25 a.m. in London, after falling as much as 2.3%, while Nasdaq contracts were down 2%. Stocks had rebounded from the worst selloff in four months during the cash session ahead of the slate of megacap results.The slide follows a red-hot run this year that saw the tech giants help haul U.S. equities to new highs amid a rampant pandemic and severe economic downturn.“As we’ve seen in reactions from some of the earnings from these large companies even beats are not strong enough to satisfy this market, which I think speaks to how fully valued a lot of these stocks are,” said Evan Brown, head of multi-asset strategy at UBS Asset Management.In Europe, the Stoxx 600 fell as much as 0.9% in early trading before trimming losses, still down 0.3% — marking a fifth consecutive day of losses and the longest losing streak since March — as the Nasdaq sell-off added to fears over new lockdowns and upcoming U.S. elections. Apple suppliers fell along with retail stocks and autos.The quartet of reports comes after a wild two days for megacap tech. The Nasdaq 100 plunged 3.5% for the biggest rout in four months Wednesday before rebounding almost 2% in Thursday’s cash session.While the companies continue to deliver strong earnings, investors have turned their focus to whether a slower-growing economy will enable profit growth that justifies sky-high valuations.Facebook was little changed in late trade even after sales topped estimates when it warned of continued uncertainty due to Covid next year and said plans to spend heavily on employees and new technology. The social network makes up more than 4% of QQQ’s holdings.Apple reported quarterly results that topped Wall Street estimates after record sales of Macs and services made up for a delayed iPhone 12 launch. But its shares dropped almost 5% after the firm revealed iPhone revenue missed the average of analysts’ estimates.Amazon lost more than 1% in late trade after it said it planned to spend more than analysts estimated related to Covid-19. Otherwise, the online retailer projected a steep jump in sales in the current quarter, topping analysts’ estimates, indicating it expects the surge in online shopping during the pandemic to extend through the holiday season.Twitter Inc. also reported Thursday and its shares got hammered on concern about its user growth. Third-quarter sales exceeded estimates and results were boosted by a return of advertisers who had fled or pulled back from the website during the early stages of the pandemic. The stock lost 14%.Alphabet was a bright spot, rallying 8% after it returned to growth in the third quarter after a decline in the previous period, fueled by digital advertising. The Google parent reported third-quarter revenue, minus the cost of distribution deals for its search engine, rose 15% to $38 billion.The results failed to soothe concern that the rally in tech shares has gone too far, too fast. Optimism that their ability to cater for stay-at-home demand would help insulate the industry from a broad profit slump during the pandemic has sent their shares up 24% as a group since the start of the year, about 10 times as big as the S&P 500.Earlier: Tech-Bubble Prophets Are Validated as Stock Rout Spares No On“It tells us that even though these stocks are below their late-summer highs, they’re still expensive,” said Matt Maley, chief market strategist at Miller Tabak + Co. “So unless they beat expectations in a significant way, investors are taking further profits. Who can blame them, given that the capital gains tax is going to rise if Biden wins next week?”This earnings season has been particularly harsh for internet and software companies. Broadly, better-than-expected results got no rewards, but tech fared the worst among major S&P 500 industries, with shares of those reported falling an average 3% the next day post results, data compiled by Bloomberg showed.Since the reporting season started two weeks ago, tech stocks in the S&P 500 have dropped more than 7%, the worst performance this far into an earnings cycle in more than a decade.“The last thing investors needed amid rising Covid cases and the upcoming election was to see weak tech earnings drain sentiment from the market’s main area of support,” said Adam Phillips, director of portfolio strategy at EP Wealth Advisors.(Updates with latest U.S. equity futures moves)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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