How We Pulled a 36% Profit in Less Than a Week

[Trading With Larry Benedict]( Larry’s Note: Tomorrow, at the 7-Day AI Blitz, I’ll be giving away [an alternative AI play]( that you can use to profit in the coming week. Stocks like Nvidia are popular AI picks. But that’s not the best way I’ve found to profit from this trend. And with a special window opening up, we have the chance to double our money – and even make as much as a year’s salary – if we know how to trade it. Please plan to [join me tomorrow night]( at 8 p.m. ET. This window won’t last long, and I don’t want you to miss it. [RSVP for free by going right here](. How We Pulled a 36% Profit in Less Than a Week By Larry Benedict, editor, Trading With Larry Benedict No sooner had 2023 begun than Apple (AAPL) went on an almighty tear. Within a month, the world’s largest stock had rallied around 27%.Then, after a brief pullback in February, AAPL rallied again. By early June, AAPL had erased all its losses from 2022. And it was trading at all-time highs by July. Like other tech stocks, investors have bid up AAPL on the huge potential AI has for its products and services. And like we saw with Adobe (ADBE) [last week]( AI will further embed market leaders like AAPL in their already dominant positions. Yet as we saw at the start of August, AAPL isn’t immune to mixed earnings… Recommended Link [Shocking Truth About America’s ‘Recession’]( [image]( You've seen the mainstream media’s warnings over and over… - “The Threat of Recession is Rising” - CNN - “A Recession is Coming” - Bloomberg - "White House Warns of a Deep Recession" - Yahoo Finance But the truth is, we're about to witness a huge economic crisis… Just not the kind of crisis you’d expect. According to U.S. Bank, what's coming next is inevitable – Which is why understanding the [details of this strange financial story]( could mean the difference between a worry-free retirement — And years of financial pain. You may not like what you’re about to hear… But if you pay attention — At least you won’t be caught off-guard in the weeks ahead. [Click here to find out how to prepare for this historic shift.]( -- Looking for a Reason to Sell AAPL’s Q3 earnings per share (EPS) beat analysts’ forecasts. But a slight drop in revenue from lower iPhone, Mac, and iPad sales gave stockholders an excuse to sell after such a massive run-up. AAPL had been on the verge of breaking through the $200 level. But the news saw AAPL instead gap down. It soon was trading below $180. That move put AAPL in oversold territory, though. And the ongoing excessive pessimism about China’s slowing economy had been fully priced in. So AAPL looked set for a potential bounce. Remember that we’re trying to capture reversions to the mean (not long-term trends) after a stock has overshot in either direction. So we took advantage of this setup to generate a tidy 35.9% profit for members of my options advisory, The Opportunistic Trader – a strong result in just five days (including a weekend). The Right Trade Setup In the chart of AAPL below, you can see its steady climb up to its July peak. Throughout this period, the 10-day moving average (MA, red line) bullishly moved above the 50-day MA (blue line). And the Relative Strength Index (RSI) tracked along the overbought level (upper grey dashed line). That’s a common pattern in a strongly rising stock. Apple (AAPL) [chart] Source: e-Signal Yet even before AAPL’s mixed earnings, the RSI was already starting to show declining momentum from overbought territory(red line). Its share price started to soften as AAPL ran into its earnings date. AAPL’s earnings added further weight to its struggle to maintain its high level of momentum. That short, sharp sell-off from its July highs saw AAPL lose around 10% in a week. It also saw the RSI cross down from overbought to oversold territory (lower grey dashed line), as you can see on the chart. Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Holding Support The RSI held support (lower orange line), so any uptick in momentum would halt AAPL’s slide (upper orange line) and also provide a base for AAPL to rally. So, on August 17, we took out a long position in AAPL by buying a call option. A call option increases in value when a share price rallies. Although AAPL opened the next day lower, it soon started to gain, closing the day higher than the previous close. And after the weekend, it continued with its climb. Take another look: Apple (AAPL) [chart] Source: e-Signal Momentum started to wane the following day (Tuesday). And our position was already in good profit. So we closed out our AAPL trade by selling our call option on August 22 for around a 36% gain. To be clear, we generated this level of profit by using options. Had we just bought the shares, our profits would have been smaller. Yet this trade highlights that we don’t have to capture big moves in the underlying stock to generate an outsized return. Instead, we need to look for stocks that have moved too far in either direction. We then aim to profit when that stock reverts the other way. It also shows that despite any hype (such as AI), the market ultimately judges based on what a company earns. Regards, Larry Benedict Editor, Trading With Larry Benedict IN CASE YOU MISSED IT… [“One-Stock Millionaire” Trades ONE Stock for 3 Decades… Wins In Any Market]( Jeff Clark here… I’ve joined the ranks of the top 1% of wealthy Americans… by IGNORING 99% of the entire stock market. Among 6,000 different stocks on the market to choose from… Hides ONE incredibly special stock. I call it, [“The One-Stock Retirement”]( because I’ve used it for over 3-decades (through ANY market) closing huge gains – time and time again. Trading this ONE stock over and over again is changing the lives of everyday folks across the world – from school teachers to doctors. You do not need trading experience and you can [get started with only $100!]( [Click Here to Learn More About My Secret.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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