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How To Trade Apple Options Ahead Of 'One More Thing' Event

Chris Katje
·2 min read

Benzinga Founder and CEO Jason Raznick and Director of Operations Luke Jacobi recently launched a lunchtime show on YouTube to interact with fans and share trading ideas.

Apple Options Trade: Shawn Cruz, the senior manager of services and advocacy at TD Ameritrade, joined the show Friday.

Cruz said option premiums are pretty cheap with the VIX volatility index falling. Instead of selling calls or puts, Cruz recommends buying puts to hedge portfolio gains.

The strategy could provide insurance on a large name like Apple Inc. (NASDAQ: AAPL) going into its event next week.

Cruz recommends going out 60 to 100 days and analyzing where resistance/support levels are. He said Apple’s support level is around $108 to $109 since August.

The strategy discussed on the show was to buy January puts at $105 to $107.5 as some traders look below the support level.

Investors might give up some gains if shares fall, but the put offsets that value. A rise in the VIX could also push option values up across the board.

The video below shows the trade. 

Winning Trades: The lunchtime show has produced some winning stock picks.

On Friday, the team discussed Raznick’s pick of Upwork Inc. (NASDAQ: UPWK), which he liked heading into earnings. Shares went up over 45% after the company's earnings beat on Wednesday afternoon.

Jacobi discussed his pick in Palantir Technologies (NYSE: PLTR). He started buying shares and recommending the stock at $10.25.

Shares hit a new high of $14.96 on Friday after reporting quarterly earnings Thursday after market close.

“I’m feeling fired up,” Jacobi said.

About The Show: The lunchtime show runs every day on YouTube from 12:10 p.m. to 1 p.m. ET.

“The point of this show is to be the best trading resource out there,” Jacobi said Friday.

The show features the Benzinga duo and a guest each day. Trade ideas are also shared from the community through the chat on YouTube.

“We’re your secret money-making machine,” said Raznick.

Subscribe to the Benzinga YouTube channel and turn on notifications to get alerted when the lunchtime show goes live each day. 

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© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.