To The Moon

On Tuesday, Apple’s stock price broke through the $200 mark during trading, closing up nearly 7.3%. This marked the largest single-day gain since November 10, 2022, and set a new all-time closing high, surpassing the previous record from December 14, 2023.

Due to the sharp rise in stock price, Apple's market capitalization soared by approximately $215 billion on Tuesday alone, marking the largest single-day market cap increase in the company’s history and the third-largest in the history of the U.S. stock market.

Reportedly, the surge was directly triggered by news from Apple's annual Worldwide Developers Conference (WWDC) on Monday. The event showcased a series of AI-related features and announced a partnership with OpenAI, integrating ChatGPT into the iPhone. Following this announcement, many mainstream institutional analysts upgraded Apple to a buy rating, acting as the biggest catalyst for future performance expectations.

Alongside this, adhering to the principle of "small steady price increasing lead to significant increases," the technical aspect also showed a perfect accelerated uptrend and formed a flawless breakout pattern, with a strong bullish sentiment prevailing.

Many investors have likely made substantial gains with Apple recently, especially those trading options. During Tuesday’s surge, call options expiring on June 14th saw a maximum increase of 6200%!

While feeling envious, many investors who didn't get in on time are eager to buy now. The question is, will this news really ignite a sustained upward trend for Apple? Is there still room to enter the stock?

Tiger academy wants to remind everyone that this kind of movement aligns with the buying logic of trend traders. However, if the stock price pulls back, the chances of getting trapped are high!

This is especially true for those considering buying call options to go long. After a week of continuous price increases, the implied volatility (IV) of call options is currently high, exposing buyers to significant IV crush risk.

If you want to invest in Apple but are worried about chasing a rising stock and getting stuck, while still wanting to benefit from its potential upside, many conservative investors might choose to sell puts. However, this strategy requires a large margin and it's challenging to buy the stock at a lower price before the expiration date.

To achieve both objectives, FCN (Fixed Coupon Note) products can be a good option for three main reasons:

1. No Margin Requirement: The product requires 100% cash investment without margin use.

2. Earning Interest: Investors can earn interest without triggering the knock-out, and enjoy the benefits of stock price appreciation within a specified range.

3. Buying stock at a Lower Price: If the stock price falls to the strike price, triggering the option to buy, investors can purchase the stock at the desired lower price.

For example, consider a current FCN product linked to Apple. With a 3-month term and an annualized interest rate of 10%, setting a knock-out ratio of 105%, the optimal strike price ratio is 94.62%. This means that if Apple's stock price falls to around $201, it triggers the option to buy the stock. Meanwhile, investors can still earn an annualized interest rate of 10% over the 3-month period.

This way, we can avoid the risk of buying at a high price while still earning stable interest, making it a very attractive option. For those interested in FCN products and wanting to learn more about the related knowledge and practical skills, you can check out the free courses：Lesson 1. Introduction to FCN (Fixed coupon notes)

Lesson 2.Unlocking the Investment Potential of FCN

Lesson 3. Risk and return of FCN

Lesson 4. FCN Practical Trading -Guide on How to Buy and Sell