As an options trader, I naturally gravitate to buying calls and puts when I feel a stock is going to have a big move. After the most recent pull back in Apple Inc (NASDAQ:AAPL), I not only want to trade options, but I'm also looking to buy some stock and add to my long term portfolio. AAPL looks like it is rebuilding strength after the most recent move from highs of $175 down to $169.so I not only want to sell some puts, but I also want to pick up some stock before it begins to move back up towards its all time highs. I like the idea of selling some 170 puts with a two week expiry as price of the stock consolidates around this level, and also picking some stock for a longer term play using the traditional 'buy and hold' type trading strategy. AAPL has been such a strong stock this fall and has moved up steadily since its last pull back in Septebmer where price of the stock was trading around $150. I don't think AAPL will be down here for long and as such I want to take advantage of this pull back and hold some stock for the long term and also taking advantage of premium selling in the short term with the option.
From a technical perspective, price of APPL has pulled back to a strong level of support which is the 21 Exponential Moving Average on a daily chart at $169. The support at this level also comes from the key level of $169 that fills the earlier gap that was formed after their earnings announcement from November 2, 2017 where earnings per share was reported at 2.07. I believe that AAPL has strong support here and will begin to resume its long trend as is apparent on the daily and weekly charts.