We have several confluences in this area that lead me to believe that a short opportunity is unfolding on Apple.
Couple of things...
We have a trendline we have broken through that is grabbing liquidity, we pushed through a high, which was also liquidity. We have broken above the yearly 1 STD dev on the VWAP, and we are at a volume profile node.
NOW....... It is important to understand that there IS a chance that the need for liquidity pushes price to ATH, and then we see the reversal. That is NOT out of the question.
HOWEVER, there IS a good reason to short here. The end of the year is coming. Major players will liquidate a lot of their portfolios and take profit for tax purposes. This is generally a time at end of Q4 where we see a dip of activity, so in theory, this is a good place to short.
If you're thinking about taking a solid position that will protect you in the case of this price point not being the high reversal point, I would suggest taking yearly leap puts. This will theoretically hedge Gamma somewhat. I like to do the 50% rule for strikes price to buy, to give you incentive for being in the money, but enough value to buy those puts relatively cheap since you are buying them far enough out of the money initially.
$178 strike PUTS for MINIMUM 6 months out. So you're looking at 178P 05/24 dated options minimum. To give you a little more comfort, you can go out 8-12 months as well. But it may nip into your profits a bit more.
Couple of things...
We have a trendline we have broken through that is grabbing liquidity, we pushed through a high, which was also liquidity. We have broken above the yearly 1 STD dev on the VWAP, and we are at a volume profile node.
NOW....... It is important to understand that there IS a chance that the need for liquidity pushes price to ATH, and then we see the reversal. That is NOT out of the question.
HOWEVER, there IS a good reason to short here. The end of the year is coming. Major players will liquidate a lot of their portfolios and take profit for tax purposes. This is generally a time at end of Q4 where we see a dip of activity, so in theory, this is a good place to short.
If you're thinking about taking a solid position that will protect you in the case of this price point not being the high reversal point, I would suggest taking yearly leap puts. This will theoretically hedge Gamma somewhat. I like to do the 50% rule for strikes price to buy, to give you incentive for being in the money, but enough value to buy those puts relatively cheap since you are buying them far enough out of the money initially.
$178 strike PUTS for MINIMUM 6 months out. So you're looking at 178P 05/24 dated options minimum. To give you a little more comfort, you can go out 8-12 months as well. But it may nip into your profits a bit more.