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Dan Nathan’s Apple Options Trade

On CNBC's "Options Action,"  Dan Nathan suggested investors should consider a bullish options trade in Apple Inc. (NASDAQ: AAPL ). The company is going to report earnings July 30 and the options ... Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On CNBC’s "Options Action,"&nbsp;Dan Nathan suggested investors should consider a bullish options trade in Apple Inc. (NASDAQ: AAPL).” data-reactid=”18″>On CNBC’s “Options Action,” Dan Nathan suggested investors should consider a bullish options trade in Apple Inc. (NASDAQ: AAPL).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company is going to report earnings July 30 and the options market is implying a move of 9 points in either direction for the event. Nathan believes expectations are low and if Apple reports decent enough earnings, the stock could trade higher. Investors who are bullish on the stock and who think that it could outperform like Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) should consider buying a call option in Apple, said Nathan.” data-reactid=”19″>The company is going to report earnings July 30 and the options market is implying a move of 9 points in either direction for the event. Nathan believes expectations are low and if Apple reports decent enough earnings, the stock could trade higher. Investors who are bullish on the stock and who think that it could outperform like Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) should consider buying a call option in Apple, said Nathan.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See Also: Big Option Trades In Tenet Healthcare Ahead Of Earnings” data-reactid=”20″>See Also: Big Option Trades In Tenet Healthcare Ahead Of Earnings

He would buy the Aug. 210 call for $4.25. The trade breaks even at $214.25 or 3.13% above the closing price on Friday.

Carter Worth gave his opinion on the trade. He said that the breakeven for the trade is just at the price level which Apple failed to break back in May. Back then, the stock dropped sharply after it reported a good earnings report, said Worth.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”23″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”28″>© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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