Powerful ‘Sell’ Signal for Apple

January 3rd, 2023 Powerful ‘Sell’ Signal for Apple Dear Reader, On Friday, we looked at a Daily Price Chart of Laredo Petroleum, Inc., noting that the stock’s OBV line is sloping down, validating the stock’s bearish trend. For today’s Trade of the Day e-letter we will be looking at a monthly chart for Apple, Inc. stock symbol: AAPL. Before breaking down AAPL’s monthly chart let’s first review what products and services the company offers. Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. In addition, the company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. Now, let’s begin to break down the monthly chart for AAPL stock. Below is a 10-Month Simple Moving Average chart for Apple, Inc. Sell AAPL Stock As the chart shows, in August, the AAPL 1-Month Price, crossed below the 10-Month simple moving average (SMA). This crossover indicated the selling pressure for AAPL stock exceeded the buying pressure. For this kind of crossover to occur, a stock has to be in a strong bearish downtrend. Now, as you can see, the 1-Month Price is still below the 10-Month SMA. That means the bearish trend is still in play! As long as the 1-Month price remains below the 10-Month SMA, the stock is more likely to keep trading at new lows and bearish positions should be initiated. Our initial price target for AAPL is 115.00 per share. 110.5% Profit Potential for AAPL Option Now, since AAPL’s 1-Month Price is trading below the 10-Month SMA this means the stock’s bearish decline will likely continue. Let’s use the Hughes Optioneering calculator to look at the potential returns for an AAPL put option purchase. The Put Option Calculator will calculate the profit/loss potential for a put option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat AAPL price to a 12.5% decrease. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following AAPL option example, we used the 1% Rule to select the AAPL option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation. Trade with Higher Accuracy When you use the 1% Rule to select an AAPL in-the-money option strike price, AAPL stock only has to decrease 1% for the option to breakeven and start profiting! Remember, if you purchase an at-the-money or out-of-the-money put option and the underlying stock closes flat at option expiration it will result in a 100% loss for your option trade! In this example, if AAPL stock is flat at 124.56 at option expiration, it will only result in a 9.2% loss for the AAPL option compared to a 100% loss for an at-the-money or out-of-the-money put option. Using the 1% Rule to select an option strike price can result in a higher percentage of winning trades compared to at-the-money or out-of-the-money put options. This higher accuracy can give you the discipline needed to become a successful option trader and can help avoid 100% losses when trading options. The goal of this example is to demonstrate the powerful profit potential available from trading options compared to stocks. The prices and returns represented below were calculated based on the current stock and option pricing for AAPL on 1/3/2023 before commissions. When you purchase a put option, there is virtually no limit on the profit potential of the put if the underlying stock continues to decline in price. For this specific put option, the calculator analysis below reveals if AAPL stock decreases 5.0% at option expiration to 118.33 (circled), the put option would make 50.7% before commission. If AAPL stock decreases 10.0% at option expiration to 112.10 (circled), the put option would make 110.5% before commission and would greatly outperform the stock*. The leverage provided by put options allows you to maximize potential returns on bearish stocks. The Hughes Optioneering Team is here to help you identify profit opportunities just like this one. Interested in accessing the Optioneering Calculators? Join one of Chuck's Trading Services for unlimited access! The Optioneering Team has option calculators for six different option strategies that allow you to calculate the profit potential for an option trade before you take the trade. Get Trade Insights Directly From Chuck You can start getting market insights directly from 10-Time Trading Champion Chuck Hughes. See what he's trading and when with his exclusive Inner Circle Trading Service where he will send you his hand-picked stock and option trades. Just call Brad at 1-866-661-5664 or 1-310-647-5664 to join or [CLICK HERE]( to schedule a call! Wishing You the Best in Investing Success, Chuck Hughes Editor, Trade of the Day Have any questions? Email us at [dailytrade@chuckstod.com]( *Trading incurs risk and some people lose money trading. See Related Articles on [TradeWinsDaily.com]( [Profit from Petroleum Stock’s Spiral?]( [Specialty Insurer on Defined Downtrend]( [Fresh 52-Week Highs for ACGL](  --------------------------------------------------------------- [TradeWins Logo](  © 2022 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( If you didn't create an account using this email address, please ignore this email or [unsubscribe](. 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Open trade profit snapshots of Chuck Hughes’ trading accounts represent the open trade profit performance for the trade(s) or the portfolio displayed on the day the snapshot was taken. Open trade profits may have increased or decreased when trades were closed out. Other strategies may not have been profitable during the same time period the open trade profits were displayed. In order to avoid a conflict of interest, Trading Service recommendations were not executed by Chuck Hughes or his associates. The trade entry and exit prices (and resulting profit/loss) represent the price of the security at the time the recommendation was disseminated. Trading Service profits are not based on actual trades and have certain limitations. Because the Trading Service trades have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Also, the Trading Service results do not include the costs of subscriptions, commissions, or other fees. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. Testimonials may relate to various other products offered by Legacy Publishing and not the product offered here, but all of these products are based on Chuck Hughes' system. Performance results of other products described in such testimonials may be different from results for the product being offered and may have been achieved before the product being offered was developed. Results described in testimonials from other products or the product being offered may not be typical or representative of results achieved by other users of such products. No representation is being made that any of the persons who provide testimonials have continued to experience the same level of profitable trading after the date on which the testimonial was provided. In fact, such persons may have experienced losses thereafter or may have experienced losses preceding the period of time referenced in the testimonial. Cash Payout trades receive cash credits from the sale of option premiums. The net profits for Cash Payout trades may be less than the cash received for the sale of the option premium. Some cash income figures presented represent the total amount of option premium collected during the referenced period. Actual profits were less. Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by Legacy Publishing LLC. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, [( This email was sent to {EMAIL} by todaystrade@chuckstod.com TradeWins Publishing Corp.528 North Country Rd.St. James, NY 11780 [1-Click Unsubscribe]( | [Edit Profile]( | [Manage Subscriptions]( | [Report Spam](