• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Bullish Options Pick Up Steam on Oversold Apple Stock

The momentum indicator may be a signal that bears on Apple have already taken the bulk of their bite.
By KEVIN CURRAN Nov 27, 2018 | 03:24 PM EST
Stocks quotes in this article: AAPL

Apple (AAPL) is attracting attention on the bullish end as the stock barrels toward what investors hope is a bottom.

The shares are decelerating on Tuesday and have slid consistently aside from a small poke above Monday's close shortly before noon.

However, technical indicators and the options market are signaling a bounce could be coming as the market registers a bottom for the company that is holding on to its "most valuable" status by only $1 billion.

Oversold Indication

An indicator of a turnaround that is turning in afternoon hours is the Relative Strength Index, which has dipped below the oversold band amid Apple's continued slump.

The momentum indicator may be a signal that bears on Apple may have taken their bulk of their bite out already as the stock inches toward a bottom.

Encouragingly in the immediate term, the stock has recovered slightly since crossing beneath the band in early afternoon hours. Any piece of good news is helpful to beleaguered Apple investors at this point.

To be sure, as the stock continues to slide amid bearish market conditions, Apple's reaction to the technical signal may not be in conjunction with expectations and further support could be necessary.

"Apple still has a lot of work to do, and it will take a rise above $180 to get the change in trend," Mott Capital CEO Michael Kramer predicted.

Options Market Orients Itself to Bulls

Predicting a move past that point and indicating some positive sentiment for investors is the bullishness of the options market.

In particular, call options on a $200 strike price for January 2019 are heating up, seeing some of the highest volume on the day.

Traders seem to be indicating that tariff concerns are overblown and that the company will recover around the same time many fear additional tariffs could be inbound.

BTW. The WSJ reporter raised the $aapl question to get his story to travel. Trump didn't say "I'm putting a 10% tariff on the IPhone". Now it's getting spoken about all day. PS it held yesterday's low and was a nice trade.

— Scott Redler (@RedDogT3) November 27, 2018

For Real Money's options playbook, Tim Collins laid out a playable strategy in his column Tuesday afternoon.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Technology Hardware & Equipment | Telecommunications | Telecom Services | U.S. Equity | Stock of the Day

More from Stocks

Not Even the Mega-Cap Tech Stocks Could Hide From the Selling

James "Rev Shark" DePorre
Oct 3, 2023 4:37 PM EDT

Like or not, this is classic bear market action playing out.

Costco: Are We Witnessing a Bull Trap?

Bruce Kamich
Oct 3, 2023 1:08 PM EDT

When one of the last holdouts of the S&P 500 turns down the selloff is in full gear.

Chasing Alpha With Alphabet

Ed Ponsi
Oct 3, 2023 12:35 PM EDT

I'm not the only one who likes the tech behemoth. Bill Ackman believes Alphabet will be a leader in AI for years to come.

Looking for Capitulation? Don't Be Fooled by Minor Market Bounces

James "Rev Shark" DePorre
Oct 3, 2023 11:45 AM EDT

The market is trying to discount the impact of higher rates, but it's extremely difficult.

The Trickiest Stock in the Market

Stephen Guilfoyle
Oct 3, 2023 11:15 AM EDT

There's a lot to like about this name, but a lot that also sows the seeds of caution.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:13 PM EDT BRUCE KAMICH

    8 Trading Rules from T. T. Hoyne

    You just read the header for this missive and prob...
  • 08:42 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How Elite Traders Make Big Profits
  • 02:58 PM EDT BRUCE KAMICH

    Classic Trading Rules From Bernard Baruch

    Bernard Baruch listed the rules (below) in his aut...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login