To The Moon

​$Apple(AAPL)$ got 6 consecutive weeks gain, and it has been bounced by 34% from the bottom.

The daily volume got lower. I think we will see a pullback.

There are two possible ways:

1）Look at the orange line, AAPL is going to retest the up resistance, which is around $180, there is 4% upside.

2) A move down from the purple line directly.​

I think AAPL towards to the target of $160-165.

There were a lot of unusual options traded yesterday. Because the monthly options will expire this Friday , many options roll to September contracts. Elsewhich we can see a large number of call options take profits.

And in the past few days, there are a large number of sell put options at $165 and $155.

For Apple, a strong share will break new highs after callback.

I don't think we should short Apple now, and it still in an uptrend. Even if there is short-term pullback, we just make some protections from bulls. Of course, I have my personal bias here, I hold Apple shares.

I currently hold Sell Call options at $180 and $185 expired on Friday， which correspond to my positions. I don't think it will hit a new high directly. It may hit $180, but it will callback, so I Sell Call at these two prices.

I think I will Sell Put options when it pullback with the prices of $165 and $160.

On the other hand, I think two option strategies are applied to AAPL:

1) Bull Call Spread, that buying a call option (maybe AAPL $175) and then sell a call option with the same maturity date to a higher strike price (maybe AAPL $185), forming a Buy Call + Sell Call.

This strategy is betting on a limited increase in stock prices. The premium earned from "sell call" offsets the premium paid for "buy call" proportionately, and such a combination also reduces margin requirements in practice.

2) Straddle strategy is to bet that Apple will fluctuate greatly in next few weeks. Because Apple's IV is not particularly high, straddle is also good choice. In fact, someone traded more than $10 million at AAPL $170 straddle last night.