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Lottery Trade - 5/29/23 - AAPL


 

This is a momentum play in sympathy with the tech sector, driven by NVDA.


BUT, this is also because of their planned June 6th WWDC where they are supposed to unveil their new VR headset. I would be surprised if the market does not celebrate it. But of course, this is in the midst of tech in general being extended and


The risks are high: overall market rolling over; overall market pulling back due to Debt Deal drama; tech pulling back in sympathy with NVDA.


The chart:

Therefore, I will be only doing a VERY SMALL position - like 5 contracts.


UNDERLYING:

ENTRY PRICE: 175.55

STOP PRICE: 166.62 (Green line) - loss of 8.93.

TARGET: 190

NOTE: Resistance at 176-179 and then 182.94.


This is a blow off top type of trade as well as a news drive trade.


I WILL NOT CHASE THIS and am fine if it gaps up - I will just pass.


OPTION:

CONTRACT: Sept 205Calls for .85

IF STOPPED: calls would be worth .14, loss of 83% BUT I will watch if price breaks below the Yellow line, which has been short term support.

RESISTANCE: calls would be worth 1.39 at 182.54, gain of 63%

TARGET: calls would be worth 2.86 at 190, gain of 236%



MY PLAN:

I will watch the stock at the open as well as the overall market and see if weakness develops. If there is a pullback, I will pass. Otherwise, I will enter the trade.


IF THE MARKET IS NUTS IN THE MORNING, I HAVE NO PROBLEM WAITING A COUPLE OF DAYS TO ENTER THIS TRADE.

 

This is not investment advice. Nothing in this document should be construed as investment advice. The opinions offered are the Author's only. This document is for entertainment purposes only. Always consult with your advisors before investing any money. Readers of this document agree that they will not use this information to make investment decisions.

DO ATTEMPT TO FOLLOW THE AUTHOR'S INVESTMENT, IF ANY. THE AUTHOR MAY OR MAY NOT INVEST IN ANY COMPANIES LISTED IN THIS DOCUMENT. THE AUTHOR IS NOT A REGISTERED INVESTMENT ADVISOR AND DOES NOT HOLD THEMSELVES OUT AS ONE. THE AUTHOR IS NOT A REGISTERED REPRESENTATIVE AND DOES NOT HOLD THEMSELVES OUT AS ONE.
 



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