Well we've all been most likely watching apple fall into correction territory the past week with the market still attempting to make its decision on whether it wants to fall further or continue its bull run. After a small after market chat with a fellow trader we both came to the conclusion that AAPL will most likely fall into a period of consolidation with bulls accumulating at the lows , and bears accumulating at the highs. This indecision is clearly outlined on the Weekly chart, with the doji forming a $10 range. Closing almost exactly in between the range.
The Trade:
The Trade:
- I have my eyes on the Weekly Exp. 116 STK Straddle, with the larger amount of profit made if price heads back down to support.
- Anyhow, we will have to wait and see how AAPL opens on Monday to make the final decision on the strike for the straddle.