Apple (AAPL) has found short-term support above $140. I am recommending a LEAP call spread with a protective put.
The primary goal of this trade is to capture appreciation, while generating cash is secondary. And the purchased put will be used to protect us against a downturn in the stock.
If you enter this position, be aware you will need to be able to trade it actively, as alerts regarding it, especially the put position, could come at any time during market hours.
The target annualized rate of return for this trade is 75%, and we could be in it for just a few days or hold till expiration.
If you are new to LEAP call spreads, please watch my LEAP Call Spreads Coaching Session before entering the position.
Current Stock Price: $147.58
- Buy to open the AAPL Jun 2023 (6/16/23) 100 Call for around $53.55
- Sell to open the AAPL Jun Monthly (6/17) 150 Call for around $2.13
- Buy to open the AAPL Jun Monthly (6/17) 145 Put for around $2.16
Cost Basis: $53.58